How Does the Republican Health Care Affect Obamacare?


Thursday Republicans finally received enough votes to pass the American Health Care Act, seven years after vowing to repeal and replace Obamacare. The bill hasn’t been passed into law just yet but is now headed to the Senate where Donald Trump is confident it will soon become law.

According to a Congressional Budget Office analysis, the new plan would erase the coverage gains of the last few years and leave 24 million more people uninsured by 2026 than under Obamacare.

Under the new plan the GOP’s plan would eliminate Obamacare subsidies, which are refundable tax credits based on a person’s income and cost of coverage in their area. More than 80 percent of enrollees on the Obamacare exchanges receive this assistance, but individuals making more than $47,500 and families of four earning more than $97,200 do not qualify. Instead, Republicans plan to issue refundable tax credits to help people afford coverage on the individual market, but these credits will be based mainly on a person’s age. The bill would also eliminate all additional help for individuals earning less than $30,000 a year to cover out-of-pocket costs. More than half of Obamacare enrollees will be affected but this substantial change.

The GOP’s plan will no longer require people to obtain health coverage or face a tax penalty and employers, with at least 50 employees, will no longer be mandated to provide health insurance to their employees. Under the new plan Republicans will allow insurers to impose a 30% surcharge on the premiums of those who let their coverage lapse for at least 63 days.

The new plan weakens protection for Americans with pre-existing conditions. Those with pre-existing conditions face higher premiums from insurers that could result in the inability to be able to afford healthcare. If Americans have a lapse in their insurance coverage, they can be placed in a high-risk pool that could possibly aide in covering costs.

The American Health Care Plan will significantly overhaul Medicaid by sending states a fixed amount of money per enrollee, known as a per-capita cap. States could also opt to receive federal Medicaid funding as a block grant for the adults and children in their program where states would get a fixed amount of federal funding each year, regardless of how many participants are in the program. States could also require able-bodied Medicaid recipients to work, participate in job training programs or do community service. The Congressional Budget Office estimates the GOP bill would cut federal government’s spending on Medicaid by 25% by 2026.

The GOP bill would hike premiums for older enrollees in their 50s and early 60s, but reduce them for younger participants.

Under the new plan taxes on wealthy Americans, insurers, prescription drug makers, device manufacturers and others will be eliminated.

For more on the American Health Care Act, see here.

@Robinrazzi


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Robin is a digital content creator and has worked in the digital space for nearly ten years. "Robinrazzi" is a nickname given from a former colleague and is a perfect integration of her name and one of her greatest hobbies of having a camera in hand to capture once in a lifetime moments like paparazzi. She has traveled the world covering entertainment, celebrities, events and anything trending. She holds a BA in communications from Penn State and MS in marketing from Johns Hopkins University. She currently serves as Digital Content Coordinator for WHUR.

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