Nerd Wallet

Medicare’s prescription drug coverage that left many older people paying thousands of dollars out of pocket for their medication.

Ending Obamacare could increase Medicare beneficiaries’ costs in other ways. The ACA reduced payments to medical providers and private insurers. Reversing that could lead to higher deductibles and copays for Part A, which covers hospital visits, and higher premiums and deductibles for Part B, which covers doctor visits and other outpatient care.

On the other hand, fewer high-income beneficiaries would face premium surcharges if Obamacare went away. Private Medicare Advantage plans could reduce costs and improve coverage. A 0.9 percentage point increase in the payroll tax on higher-income workers also would be repealed.

Then again, increased Medicare spending and reduced revenues will deplete the system’s trust fund faster. The current insolvency date, with ACA in place, is 2028; after that point, Medicare’s revenues won’t be enough to cover all of its promised benefits.

You may not have thought America’s health care system could get any more dysfunctional. If Obamacare goes away, prepare to be unpleasantly surprised.

This column was provided to The Associated Press by the personal finance website NerdWallet. Liz Weston is a columnist at NerdWallet, a certified financial planner and author of “Your Credit Score.” Email: lweston@nerdwallet.com. Twitter: @lizweston.