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House Republicans announce ACA replacement plan
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House Republicans introduced two bills Monday night to replace the Affordable Care Act. The new plan will no longer penalize Americans for not having health care insurance, but will allow insurers to impose a surcharge of 30% for those with gaps in their health plan, according to the Washington Post.
The plan, known as the American Health Care Act, will next move to the Congressional Budget Office for analysis.
Under the plan, Medicaid will be converted into a per capita cap on funding to states, depending on how many citizens have enrolled. The government will continue to pay for the cost of expansion in states that have already expanded Medicaid through the Affordable Care Act. For those states that have not expanded Medicaid, the bill will provide $10 billion that the states will share. The states can use that funding to subsidize hospitals and other providers of care, according to the article.
The new plan would also allow children to stay on their parents’ health insurance plans until age 26 years and would not allow insurance providers to charge extra or deny coverage for customers with preexisting medical problems, according to an article in the Washington Post.
Further, Planned Parenthood will not be eligible for Medicaid reimbursements or federal family planning grants under the new health care bill.
Tax credits will be available ranging from $2,000 per year for those younger than 30 years and up to $4,000 per year for those older than 60. Those who make up to $75,000 a year will be eligible for the tax credits, as well as couples with a combined annual household income of $150,000 if they file jointly. The tax credits will be reduced by $100 for every $1,000 in additional income for persons or couples who go over the income limits, according to the Washington Post article.
“The American Health Care Act is a plan to drive down costs, encourage competition, and give every American access to quality, affordable health insurance. It protects young adults, patients with pre-existing conditions, and provides a stable transition so that no one has the rug pulled out from under them,” House Speaker Paul Ryan (R-Wis.) said in a statement on his website.
References:
http://www.speaker.gov/press-release/statement-introduction-american-health-care-act
https://housegop.leadpages.co/healthcare/