5 Ways The 2017 Tax Cuts Reduced Access To Healthcare

James

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Post on Jul 04, 2025

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5 Ways the 2017 Tax Cuts Reduced Access to Healthcare

The 2017 Tax Cuts and Jobs Act, while lauded by some for its economic benefits, had a significant and arguably detrimental impact on healthcare access for millions of Americans. While the legislation didn't directly target healthcare, its ripple effects significantly reduced access to vital services, particularly for vulnerable populations. This article explores five key ways the tax cuts exacerbated existing healthcare inequalities.

1. Increased Uninsured Rates: A core component of the 2017 tax cuts was the repeal of the individual mandate penalty under the Affordable Care Act (ACA). This penalty incentivized individuals to purchase health insurance, contributing to a decline in uninsured Americans. Its removal, however, led to a measurable increase in the uninsured rate, particularly among young adults and low-income individuals. According to the Kaiser Family Foundation,[^1] the repeal of the individual mandate contributed to a rise in the number of uninsured Americans, leaving many without access to preventative care and crucial medical treatments. This rise in uninsured individuals places a greater strain on the already burdened healthcare system, often leading to delayed care and poorer health outcomes.

2. State Budget Cuts: Many states relied on increased federal funding under the ACA to expand Medicaid and support their own healthcare programs. The 2017 tax cuts, by reducing federal revenue, forced states to grapple with budget shortfalls. This resulted in significant cuts to state-level healthcare programs, impacting funding for hospitals, community health centers, and crucial public health initiatives. These cuts disproportionately affected low-income communities and those reliant on public healthcare services, creating longer wait times, reduced services, and limited access to vital care.

3. Reduced Funding for Public Health Programs: The decreased federal revenue stemming from the tax cuts also led to reduced funding for critical public health programs at the national level. These programs, which address preventative health measures and tackle public health crises, suffered significant setbacks. This reduction in funding weakened the nation’s ability to prevent and manage outbreaks of infectious diseases, address chronic health conditions, and provide essential public health services to underserved populations. The consequences are felt across the board, widening the existing healthcare disparities.

4. Increased Healthcare Costs: While the tax cuts aimed to stimulate the economy, some argue that the resulting increase in the national debt contributed to rising healthcare costs. Higher interest rates and increased government borrowing can impact the overall cost of healthcare services and insurance premiums, making healthcare less accessible for individuals and families already struggling financially. The long-term consequences of this financial burden on healthcare access remain a subject of ongoing debate and research.

5. Weakening of the ACA Marketplaces: The repeal of the individual mandate and subsequent reduction in enrollment on ACA marketplaces led to a decrease in the risk pool. This, in turn, resulted in higher premiums for those remaining in the marketplace and limited choices for health plans, particularly in rural areas. This further restricted access to affordable and comprehensive health insurance for individuals who relied on the ACA marketplaces for their coverage. The instability within the marketplaces has created a significant barrier to accessing quality healthcare for many Americans.

Conclusion:

The 2017 Tax Cuts and Jobs Act, while intended to boost the economy, undeniably had significant and lasting consequences on healthcare access in the United States. The ripple effects of reduced federal funding, increased uninsured rates, and destabilized healthcare marketplaces disproportionately impacted vulnerable populations, exacerbating existing health disparities. Understanding these consequences is crucial for developing effective policies aimed at improving access to affordable and quality healthcare for all Americans.

[^1]: Kaiser Family Foundation. (Insert relevant KFF report link here)

Call to Action: Stay informed about healthcare policy and advocate for policies that prioritize equitable access to quality healthcare for all.