Republicans have proposed many plans to repeal and replace Obamacare. Here is a primer explaining the most important aspects of each plan.
Speaker Ryan’s plan:
- Eliminates the individual mandate to obtain health insurance
- Eliminates subsidies for individuals for health insurance
- Eliminates Medicaid expansion by 2020
- Grants individuals a tax credit between $2,000-$4,000, with higher allotments for older Americans
- Doles out $10 billion per year to states for “innovation grants” that would create high-risk pools for people with pre-existing conditions
- Caps Medicaid spending per person
- Imposes a tax on employer-sponsored health care plans above the 9oth percentile
Read Paul Ryan’s leaked draft bill here.
Senator Rand Paul’s Plan: The Obamacare Replacement Act
- Eliminates the individual and employer mandate
- Authorizes a tax credit up to $5,000 for individuals and families that contribute to Health Savings Accounts to further incentivize health savings
- Removes the maximum allowable annual contribution limit to HSAs, so that individuals may make unlimited contributions to an HSA
- Allows the use of HSA funds to pay for insurance premiums
- Expands Association Health Plans (AHPs) to allow small business owners and individuals to band together across state lines through their membership in a trade or professional association to purchase health coverage for their families and employees at a lower cost; in addition, the bill allows individuals to pool together through any organization to purchase insurance
- Allows the purchase of insurance across state lines
Senators Cassidy and Collins’ Plan: The Patient Freedom Act
- Repeals the individual and employer mandate for health insurance
- Keeps protections for pre-existing conditions
- Allows young adults to stay on their parents’ health plan until age 26
- States to have three options:
- Retain the Affordable Care Act, allowing individuals and small business able to purchase insurance on state exchanges and low-income residents can receive federal subsidies to cover the cost of the program. States that expanded Medicaid, can continue to provide increased Medicaid coverage
- States can receive most of the federal funding, including federal funding, Medicaid expansion, and subsidies to create tax-free Health Savings Accounts for low-income citizens. Low-income residents can use the HSAs to purchase insurance and pay for health care
- Allow states to create an alternative solution without federal assistance. States would retain the power to design and regulate insurance markets without federal intervention