Congressional Republicans on Monday night released their formal plan for replacing Obamacare.
Read the bill here and a description of each section of the bill here.
The bill calls for issuing a refundable, advanceable tax credit to customers of individual health plans with the value of that credit tied to age and income. Tax credits would begin at $2,000 for people in their 20s, and gradually increase to $4,000 for people over age 60.
The bill also would repeal the authority of states to expand their Medicaid programs to nearly all adults by 2020.
The GOP proposal also would repeal the Affordable Care Act’s taxes beginning in 2018, and would bar funding from going to Planned Parenthood. It also would double the current allowable contribution levels for Health Savings Accounts.
The bill does not call for eliminating the Obamacare provision that currently bars insurers from denying coverage to, or charging higher rates for, people with pre-existing health conditions. Nor does the bill call for getting rid of the popular ACA provision that allows adults under the age of 26 to be covered by their parents’ health plans.
The bill is certain to face hurdles in the Senate, where four GOP members on Monday expressed opposition to the idea of rolling back the number of people covered by Obamacare’s Medicaid expansion, and some Republicans have opposed the elimination of Planned Parenthood funding.
The legislation also will be attacked by supporters of Obamacare, who have warned that GOP proposals to date risk coverage for millions of Americans who have obtained insurance as a result of the ACA
The bill has yet to be “scored” by the Congressional Budget Office, which will provide lawmakers with an analysis of both the costs of the programs, and any revenues it would generate, as well as an estimate of how many people would have health coverage once it takes effect. Republicans said the costs of the bills’ provision will be covered by repealing Obamacare.
“After years of Obamacare’s broken promises, House Republicans today took an important step,” said House Energy and Commerce Committee Chairman Greg Walden, R-Oregon, on Monday night.
“We’ve spent the last eight years listening to folks across this country, and today we’re proud to put forth a plan that reflects eight years’ worth of those conversations with families, patients, and doctors,” Walden said in a prepared statement. “Simply put, we have a Better Way to deliver solutions that put patients – not bureaucrats – first, and we are moving forward united in our efforts to rescue the American people from the mess Obamacare has created.
“With today’s legislation, we return power back to the states – strengthening Medicaid and prioritizing our nation’s most vulnerable. We provide the American people with what they’ve asked for:greater choice, lower cost, and flexibility to choose the plan that best suits their needs. Today is just the first step in helping families across this country obtain truly affordable health care, and we’re eager to get this rescue mission started.”
Obamacare, since it began taking effect in 2010, has been credited with extending health-care coverage to about 20 million Americans.
The ACA accomplished that through three major components.
The first, and earlier, allowed people under age 26 to remain on their parents’ health plans.
The second allowed states to expand their Medicaid programs to cover nearly all poor adults.
The third authorized the creation of government-run insurance exchanges, and issued tax credits to help lower and middle income earners pay for individual health plans sold on those marketplaces.
Since its inception, the ACA has generated heated political debate. Republicans repeatedly have vowed to repeal the law.
But in recent months, since President Donald Trump took office, GOP members of Congress have increasingly been confronted by constituents worried about the prospect of losing insurance gained through Obamacare.
A number of Republicans also have expressed concern about the potential for millions of people losing coverage.
