Broker Check

Am I Likely to Lose My Health Insurance?

| December 30, 2016

Am I Likely to Lose My Health Insurance?

 

There’s ongoing uncertainty about the future of the Affordable Care Act (ACA) following the election of Donald Trump. With this in mind, as well as the question of what could emerge to replace the program, here are three things to consider as you ponder the future:

 

  1. Not all of the ACA may go away: Trump has indicated that he wants to maintain certain popular aspects of the ACA. That’s good news for younger adults who are still on their parents’ plans. That’s also a relief for people with preexisting conditions, a key tenant of the ACA law.3,4
  2. A transition would take two years: While it seems likely that the ACA could be repealed, it is equally unlikely that Trump and Senate Republicans would see any political advantage to a transition without a replacement plan set into law. This gives you time to look into exploring other coverage options.3,4
  3. Health Savings Accounts: One such coverage option is the Health Savings Account (HSA), a tax-advantaged account that allows you to save for qualified health care expenses and insurance deductibles. You can save money before taxes and withdraw without penalty for medically necessary expenses. In 2017, you will be able to set aside $3,400, while the limit is $6,700 for a family. Another advantage to an HSA is that, once you reach age 65, you are allowed to use the funds for any reason, paying only normal income taxes. Many of Trump’s stated ideas for replacing the ACA have involved HSAs, so it may be worth your while to become familiar with how they work.5

While there is currently no timeline, nor any solid idea for what the changes may look like, it seems that some change is inevitable. You may be able to weather any transition by either seeking other insurance options, or by saving for coverage.

Nick A Weber, CFP®, CRPS®

www.nickaweber.com

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty.

Citations

3 - time.com/money/4564243/trump-obamacare-repeal-outcome/ [11/9/16]

4 - money.cnn.com/2016/11/22/news/economy/obamacare-health-care/index.html [11/22/16]

5 - usatoday.com/story/money/personalfinance/2016/11/17/hsa-health-savings-account-tax-break/91973354/ [11/17/16]