New York Estate Planning & Elder Law Blog
Another major platform that President Trump ran under was the promise to repeal the widely contested Obamacare plans, and to instead bolster Medicare and Medicaid eligibility and benefits. Since taking office, the businessman has changed his position multiple times regarding whether an overhaul of the system will be made or whether he will keep his promise to leave Social Security and Medicare alone.
Medicare Proposals by the House
House Speaker Paul Ryan has been an avid supporter of overhauling the system, by combining Medicare Parts A and B and also increasing the Medicare age of retirement to that of the full retirement age that one must qualify for with Social Security. Additionally, this proposal would allow Medicare beneficiaries to choose which plan they wish to elect between private plans or traditional plans, based on their health needs, but would not take effect until 2024.
Medicare Proposals by Trump
President Trump set himself apart from other members of his party by stating that he would protect entitlements in Medicare and moving Medicare to a block grant program. Block grant programs will give each individual state a fixed amount of money based on the number of people who enroll in the program in their state.
Trump has remained steadfast in this promise thus far, however, with his cabinet being chosen over the coming weeks, sceptics believe some of these views will change. However, the block grant program will likely come up short due to more money going to low income citizens in certain states. Thus, states would have to rely on additional taxes being raised to make up the difference needed from the lack of federal funds, possibly charging enrollees and cutting certain programs that are currently available.
With his new pick for Budget Director, if entitlement reform for programs does change, it would affect those who are working and thus subsequently on corporate based insurance, not those relying on Social Security or Medicare. Price, the new budget director, previously stated that he foresaw an overhaul of the Medicare system within six to eight months of Trump being in office, with the biggest change being the requirement of premium payments along with Medicare.
Consumers could then use their government benefits to purchase private insurance instead of having to rely on Medicare long term. For some individuals, this approach makes sense due to certain health conditions, or lack there of, and would encourage competition which lowers costs.