Republicans in the House have proposed their plan to replace Obamacare. Here are some details about the new bill:
*The individual mandate is removed — (the requirement for everybody to have health insurance or pay a tax penalty).
*It allows insurance companies to charge people 30% more for insurance if they have a gap (a period of no insurance) when getting a new plan.
*Insurance companies now can charge older Americans five times more than younger Americans — which is different from Obamacare — it only allowed three times the cost.
*Insurance companies can’t deny people if they have pre-existing health issues (like Obamacare).
*Young adults can stay under their parents’ health insurance plans until age 26 (like Obamacare).
*Obamacare’s federal subsides to insurance plans would be replaced by individual tax credits.
Tax credits will be granted based on age. 30 and under will get $2,000 a year, 30 to 40 $2,500 a year, 40 to 50 $3,000 per year, 50 to 60 $3,500 per year, 60 and over $4,000 per year.
This is available to individuals earning up to $75k a year and up to $150k for married couples filing jointly. This is different from Obamacare, who did not give any subsidies to people who earned more than $48,000.
****The Medicaid expansion under Obamacare would be phased out by 2020.
*Planned Parenthood can’t get reimbursements from Medicaid or from federal grants.
[There are many more details and interpretations of this proposed bill, I encourage you to contact your insurance company or a professional if you have questions about how this bill might impact you.]
The bill will go through several committees for revisions and if all goes smoothly, it will be introduced to the full House to vote — which could happen in the next two weeks. If it passes, it moves to the Senate. If it passes, then President Trump can sign it in law.
****CORRECTION: Medicaid will be phased out in 2020, not Medicare.