- The Wall Street Journal reports that the Republican's proposal (AHCA) to overhaul the Affordable Care Act (ACA) would change almost everything about the ACA. Key differences:
- The individual mandate to buy insurance will disappear as will the penalty for no coverage, but individuals who are uninsured for more than two months and then purchase insurance would face a 30% increase in premiums. The aim is to encourage people to get coverage before becoming sick.
- Insurers will be allowed to charge older Americans more than they do now, up to 5x the amount for youngsters compared to 3x at present.
- Tax credits replace federal subsidies. People who don't receive insurance through their employers will be eligible for age-based tax credits, $2K/year for people under 30 up to $4K for those over 60. Tax credits for families would be capped at $14K. Credits shrink for individuals making more than $75K in annual income or families earning more than $150K. In a late addition, legislators created a new pot of money to enhance tax credits for individuals aged 50 - 64 to help them buy coverage because the AHCA would widen the financial gap between the young and old.
- Health plans will still be required to sell insurance to people with pre-existing conditions and parents would still be able to keep their kids on their health plans until age 26.
- The annual cap on the amount of money people can put into tax-free health savings accounts would double.
- Insurers will no longer be required to cover a list of 10 "essential health benefits," freeing them to offer pared-down plans at lower prices, hopefully encouraging more young people to sign up.
- A $15B fund will be created that the states can use for mental health and maternity care. To pay for this, the repeal of the Medicare payroll tax on individuals making more than $200K (households > $250K) will be postponed until 2023.
- Many of the ACA taxes and requirements would go away, including the requirement that larger employers offer health insurance to employees. Medicaid funding would continue through 2019, then decline thereafter.
- In a swipe to liberals, $500M in federal funding for Planned Parenthood would be eliminated for one year.
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