7 key provisions of the Republican ACA replacement bill
March 10, 2017 9:06 AM
Introduction
On Monday, the GOP released its plan to repeal and replace the Affordable Care Act. Much work lies ahead in navigating the bill through Congress—two House committees will begin work on the legislation to prepare it for consideration. Here are the details of the bill.
Delays tax on high-cost insurance plans
The proposal would delay until 2025, instead of permanently repealing, a tax on high-cost health insurance plans.
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Insurance requirement is eliminated
The proposal immediately ends a requirement that individuals have insurance coverage and another rule that requires some businesses to offer coverage to their workers.
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Health savings accounts are expanded
The proposal expands the allowable size of healthcare savings accounts that can be coupled with high-deductible insurance plans. Those amounts now rise to as much as $6,550 for an individual or $13,100 for a family.
Tax credit proposed for health insurance
The bill includes an advanceable, refundable tax credit to assist those buying health insurance. The credit starts at $2,000 per person, and a family can qualify to receive as much as $14,000. Credits phase out for individuals making more than $75,000 a year, or at $150,000 for couples filing joint tax returns.
Popular provisions of ACA are maintained
The House Republicans’ bill aims to maintain coverage for people with pre-existing conditions and allow children to stay on their parents' health plans until the age of 26. While the plan would allow people with pre-existing conditions to buy insurance, it would require “continuous” coverage to discourage people from buying coverage only when they get sick. Individuals who don’t maintain health insurance for longer than a set period of time would face 30 percent higher premiums as a penalty.
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Insurance support provisions added
The plan would gives states a $100 billion fund over a decade to help people with 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.
Medicaid expansion goes in reverse
The GOP plan winds down Obamacare’s expansion of Medicaid as a way to expand healthcare coverage. By contrast, it 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.
