A leaked draft bill outlines Speaker Ryan’s plan to dismantle core parts of Obamacare, replacing it with a new tax credit.
A lobbying source first provided the draft bill to The Hill. Politico also reported on it.
The draft bill would eliminate the individual mandate, subsidies to obtain coverage for health insurance, and Medicaid expansion by 2020.
The Ryan plan grants individuals a tax credit between $2,000-$4,000, with higher allotments for people a higher age. The Ryan plan also doles out $10 billion per year for “state innovation grants” that would create high-risk pools for people with pre-existing conditions.
The GOP leadership plan caps Medicaid spending per person. Medicaid is a controversial issue for many lawmakers. Governors who accepted Medicaid expansion do not want it reduced, while some congressmen such as Mark Meadows (R-NC) want Medicaid block granted to states.
The Republican leadership plan would pay for the Obamacare repeal bill by imposing a tax on employer-sponsored plans above the 90th percentile. Congressman Pete Sessions argued that this would amount to a new “Cadillac tax.”
The leaked bill Obamacare bill was dated February 10; this might not be the most recent form of the Ryan repeal bill. The House Energy and Commerce Committee plans to hold hearings as early as the week of March 1, though some aides say it may take until the week of March 6 to start drafting an Obamacare repeal.