Trump mirrors right-wing media plea to scuttle ACA's individual mandate in GOP tax plan
Ending the policy would cause premiums to increase and millions to lose insurance
Blog ››› ››› JULIE ALDERMAN
A tweet from President Donald Trump urged lawmakers to include a provision in the latest so-called "tax reform" proposal to eliminate the Affordable Care Act’s (ACA) individual mandate, a policy that stipulates that all citizens must have health insurance or pay a small tax penalty. This proposal has been floating around right-wing media recently, despite the disastrous consequences it would have.
In an apparent reference to the ACA’s individual mandate, Trump tweeted a message on November 13 urging lawmakers to consider “ending the unfair & highly unpopular Indiv Mandate in OCare & reducing taxes even further” as part of the impending Republican plan to rewrite the tax code.
Some in right-wing media have made the same suggestion in recent weeks. The Wall Street Journal’s editorial board wrote in a November 12 piece that “the best move for tax and health-care reform is to include the mandate repeal.” Earlier, on November 6, Washington Post columnist Hugh Hewitt called on Republicans to “kill off the mandate and advance tax reform at the same time.” Fox contributor Marc Siegel wrote in a November 9 op-ed, “It is time to kick the mandate leg off the stool and let it collapse under the weight of its over-bloated, one-size-fits-all insurance policies.” And Jay Caruso of the Dallas Morning News tweeted shortly before Trump this morning, “Call your Senators and urge them to repeal the Obamacare mandate tax.”
These calls to dismantle the individual mandate would have disastrous consequences. In a November 8 analysis, the nonpartisan Congressional Budget Office (CBO) estimated that repealing the individual mandate in 2019 would decrease the number of people with health insurance “by 4 million in 2019 and 13 million in 2027.” Additionally, the report also estimated that for those not covered through their employers, “average premiums … would increase by about 10 percent in most years of the decade … relative to CBO’s baseline projections.” The Center on Budget and Policy Priorities also found that the resulting premium increases “could affect about 7 million mostly middle-income people who purchase ACA-compliant individual market coverage but have incomes too high to qualify for subsidies.”
In his tweet, Trump suggested that dismantling the individual mandate -- and thereby throwing a wrench into the insurance market while simultaneously freeing up funds to use for tax cuts -- would lower taxes for the top tax bracket and benefit the middle class, though it’s unclear how it would do the latter. The plans Trump and Republican lawmakers have proposed are filled to brim with goodies for the wealthiest at the expense of middle-class workers. Repealing the individual mandate would only make the consequences even more dire for middle-class families.
As Talking Points Memo’s Alice Ollstein wrote, calls to get rid of the individual mandate are “going over like a lead balloon on Capitol Hill” and including a provision to repeal it “could put the entire bill in jeopardy.” That’s because politicians -- even Republicans -- realize that it would be a disaster for the health insurance markets and their political careers.