House Republicans on Monday unveiled legislation to repeal and replace the Affordable Care Act —the first step to deliver on a campaign promise to replace the 2010 health care law. The proposed legislation, called the American Health Care Act, would create a new tax credit tied to an individual’s age and income, aimed at helping Americans buy insurance if they don’t get it at work.1 The legislation would also end a requirement to have coverage, and would eventually eliminate many taxes used to fund the current health care law, known as ObamaCare.
According to a breakdown provided by Bloomberg,2 here are some of the key provisions included in the proposed legislation:
• An advanceable, refundable tax credit to help buy insurance for individuals, that phases out for people making more than $75,000 ($150,000 for a couple filing jointly). The size of the credit grows with age and the number of people in a family.
• Immediately ends a requirement that individuals have insurance coverage and another rule that requires some businesses to offer coverage to their workers.
• Expands the allowable size of health-care savings accounts that can be coupled with high-deductible insurance plans, up to $6,550 for an individual or $13,100 for a family.
• Winds down Obamacare’s expansion of Medicaid. Changes it to a per-capita system, where states are given a set amount for the number of people in categories including the disabled, elderly, childless adults and pregnant mothers.
• Requires “continuous” insurance coverage. Individuals who go uninsured face a 30 percent higher premium as a penalty.
• Gives states a $100 billion fund over a decade to help lower-income people afford insurance, and to help stabilize state insurance markets. The fund could be used to help lower patients’ out of pocket costs or to promote access to preventive services.
EyewireTV coverage of the proposed health care legistlation can be found here.
1. "Introducing the American Health Care Act.” https://housegop.leadpages.co/healthcare/. Accessed March 8, 2017.ng the American Health Care ActIntroducing the American Heal
2. Tracer Z, Edney A, Dennis S. "Republicans Unveil Health Care Bill to Bridge Gaps in Party.” Bloomberg. www.bloomberg.com/politics/articles/2017-03-06/republicans-unveil-legislation-to-repeal-and-replace-obamacare. Accessed March 6, 2017.