GOP to Unveil Plan to Replace Obamacare

By:
Chris Gaetano
Published Date:
Jun 22, 2016
HealthBenefitsRepublicans plan to unveil a new plan that, if turned into law, would roll back many of the changes in the Affordable Care Act and replace them with more market-based measures, according to The Hill. The plan, spearheaded by Speaker Paul Ryan, is in the form of a white paper versus legislation, which The Hill says allows Republicans to avoid needing to offer hard numbers. Speaker Paul Ryan said that no actual legislation is planned until 2017, when President Obama is out of the White House. 

The GOP proposal would create a tax credit aimed at helping people afford health care coverage, though unlike the current ACA credit, it would be based not on income but on age. It would also abolish requirements for what insurance plans must offer, and replace it with another tax credit to allow people to buy catastrophic insurance plans. The revenue to do this would come from capping deductions for employer health plans. 

Also gone would be the ban on denying coverage based on pre-existing conditions, if someone was previous uninsured; the ban would remain in effect if someone already had coverage. People with pre-existing conditions seeking insurance would instead go into government-subsidized high-risk pools. 

Finally, Medicaid payments would be capped for states, and people under Medicare would get the option to receive financial assistance to buy a private plan. 

Democrats were generally critical of the plan, according to The Hill, saying it would mean less assistance for low-income individuals, and completely alter the character of Medicare. 

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