On Friday, February 24th, the news outlet Politico released a copy of legislation being drafted by Republican Leadership in the House of Representatives that is intended repeal and replace the Affordable Care Act. The legislation would effectively terminate the bulk of the Affordable Care Act at the end of 2019. A wide range of policies are proposed to be terminated on December 31, 2020 with significant changes to the Medicaid and insurance marketplace taking effect simultaneously. The bill includes proposals such as:
- Repealing the ACA advanced premium tax credits (APTCs) which are used to subsidize the purchase of health insurance on the exchanges;
- Repealing ACA taxes, including the increased Medicare tax; the tax on high-cost health plans; the health insurer tax; and the medical device tax, among others;
- Establishing a new tax credit to purchase insurance that is based upon age rather than income:
- The credit would vary from $2,000 for individuals younger than 30 to $4,000 for individuals over 60.
- Eliminating the increased Federal matching rate (FMAP) for 1915k/Community First Choice services;
- Rescinding increased FMAP for the ACA expansion group;
- Setting a per-capita cap on Medicaid expenditures; and
- Providing $100 billion in grants to states in order to establish programs that support the insurance marketplace and individuals with significant health conditions.
Thursday, March 2, 2017