The House Republicans released the bill for a new Health Care Act titled the American Health Care Act on Monday night(March 6, 2017). The new health care law will repeal and replace major portions of the Affordable Care Act popularly known as Obamacare.
The bill repeals major portions of the Affordable Care Act which included individual mandate and most of the taxes that Obamacare imposed. The new legislation calls for providing refundable tax credits based on a person's age and income. But the new law did not repeal two popular features of Obamacare. One of them is that insurance companies need to insure people with pre-existing conditions, and another allowing young adults to remain on their parents’ insurance plans until they are 26 years old.
American Health Care Act VS Affordable Care Act
Both Obamacare and the proposed GOP plan help people afford policies by providing refundable tax credits that are paid in advance to insurers. Those buying plans on the individual market are eligible, but those covered through their jobs or the government are not.
There are some significant differences. Obamacare's subsidies are based on enrollees' incomes and cost of coverage in their areas. The Republican tax credits vary with age, ranging from $2,000 for 20-somethings to $4,000 for those in their early 60s.
But Obamacare and the Republican plan both have income caps. An enrollee making more than $47,500 does not qualify for assistance under Obamacare. If the GOP plan becomes law, those making more than $75,000 would see their tax credits start to phase out, and an enrollee making more than $215,000 would no longer be eligible.
American Health Care Act VS Affordable Care Act
Both Obamacare and the proposed GOP plan help people afford policies by providing refundable tax credits that are paid in advance to insurers. Those buying plans on the individual market are eligible, but those covered through their jobs or the government are not.
There are some significant differences. Obamacare's subsidies are based on enrollees' incomes and cost of coverage in their areas. The Republican tax credits vary with age, ranging from $2,000 for 20-somethings to $4,000 for those in their early 60s.
But Obamacare and the Republican plan both have income caps. An enrollee making more than $47,500 does not qualify for assistance under Obamacare. If the GOP plan becomes law, those making more than $75,000 would see their tax credits start to phase out, and an enrollee making more than $215,000 would no longer be eligible.
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