GOP Obamacare replacement bill draft leaked

GOP Obamacare replacement bill draft leaked | Insurance Business

GOP Obamacare replacement bill draft leaked
A draft of a House Republican bill that would repeal Obamacare has leaked, according to a Politico report.

The legislation would dismantle the Affordable Care Act, eliminating the individual mandate, income-based subsidies, and all of the taxes enacted under the law, according to a copy obtained by Politico. It would also significantly slash Medicaid spending and give states money to create “high-risk pools” for some people with preexisting conditions.

Some elements of the repeal would take effect immediately upon passage, according to Politico. Others would take effect in 2020.

The Republican replacement for Obamacare would give tax credits based on age rather than income, Politico reported. For a person under 30, the credit would be $2,000. For someone over 60, it would be $4,000. The plan would also eliminate the ACA’s Medicaid expansion in 2020. While states could still choose to cover people under the expansion, they’d get less federal money with which to do so. States would also get capped payments instead of the current open-ended federal entitlement, according to Politico.

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The replacement plan would  be paid for by limiting tax breaks on more generous employment-based plans, Politco reported. It’s a strategy similar to the ACA “Cadillac tax” – a tax GOP lawmakers have fought to repeal.

Other changes under the Republican plan are aimed at strengthening the individual market. The legislation would allow insurers to charge older customers as much as five times what they charge younger people. The legislation also outlines penalties for people who don’t maintain continuous coverage. For instance, those whose coverage lapsed would have to pay 30% more in premiums for a year after re-enrolling. 

Republicans have vowed for years to end Obamacare – but they may face an increasingly tough sell with their constituents. Recent polling indicates that the ACA is gaining popularity, and supporters of the law have been attending Republican town hall meetings across the nation to demand lawmakers explain how they’ll prevent the 20 million people who gained coverage under Obamacare from losing it.