This bill would give billions of dollars to big drug and insurance companies, while dramatically increasing costs for people ages 50 and older and for those with pre-existing conditions. Under the AHCA, insurance companies would be allowed to charge older adults five times what other consumers pay for the same health insurance policy. Plus, it would further penalize people in their 50s and 60s by changing the way health care tax credits are calculated. Under current law, tax credits are determined by what your health insurance costs are, as well as your ability to afford that coverage. Under the House bill, those factors would no longer be considered, which would cut tax credits for older adults by thousands of dollars. If this bill becomes law, it could force South Dakotans ages 50 to 64 to dig a lot deeper into their pockets to pay for health insurance and for many, these premium increases would become unaffordable. In South Dakota, the age tax and the reduced tax credit alone would bump the current average annual premium for someone age 55 earning $25,000 a year from $5,973 to $6,508. For someone age 64 earning the same amount, the premium increase ranges from $10,359 to $11,128. And it wouldn’t just be those individuals picking up the tab. According to AARP research, increasing the age tax would mean taxpayers of all ages would have to spend an extra $6.7 billion in assistance for older Americans who require additional help.
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