The Hill has done an excellent job of breaking down the new bill’s component parts. The picture is not pretty. I f you are old, poor and sick, you may have just gotten a death sentence.
The GOP bill repeals ObamaCare’s subsidies and Medicaid expansion.
The AHCA repeals ObamaCare subsidies that help offset the cost of insurance, as well as the expansion of Medicaid after 2019. In their place, the GOP bill would provide a new tax credit, ranging between $2,000 and $4,000 per individual, increasing with someone’s age and family size.
The new tax credit would be substantially smaller on average than ObamaCare’s financial assistance. The new tax credit would be 36 percent, or $1,700, less on average than under ObamaCare, according to the Kaiser Family Foundation.
The Republican bill includes protections to people with pre-existing conditions, while repealing ObamaCare’s mandate.
The GOP bill would keep many provisions from ObamaCare that protect people with pre-existing conditions, like the ban on insurers denying them coverage or charging them more.
A change, though, is that the measure also eliminates ObamaCare’s mandate for people to have coverage, which Democrats used to try to encourage healthy people to enroll and balance out the costs generated by the sick.
The new tax credit would be structured differently than ObamaCare’s, providing less help to low-income people.
But there are also crucial differences between the ObamaCare system and the Republican proposal. ObamaCare’s tax credits are based on income, so low-income people get more help. The GOP credits are based on age, not income, with older people receiving more assistance.
The bill repeals ObamaCare’s taxes.
The GOP measure repeals almost all of ObamaCare’s taxes. That includes a tax on medical device companies that Republicans say cost jobs, and a Health Insurance Tax that insurers say drives up premiums.
The one controversial exception is that the bill would bring back ObamaCare’s “Cadillac Tax” on generous health plans after 2025, in order to prevent the bill from adding to the deficit in that decade.
The measure also repeals a pair of ObamaCare taxes on high-earners, which Democrats emphasize will result in a massive tax cut for the wealthy.
The plan would restructure Medicaid to cap federal payments.
Besides dealing directly with ObamaCare, the GOP bill would restructure Medicaid, which provides coverage for about 70 million poor, disabled and elderly people.
The proposal would cap federal Medicaid payments to states for each enrollee, a change from the current, more open-ended federal commitment.