How to avoid the “snowball effect” with Obamacare
The first major piece of legislation to repeal and replace the Affordable Care Act took effect on January 1, 2016, but the Republican effort to do so has failed to garner much attention outside the House of Representatives.
The new health care bill, the American Health Care Act, is a departure from the health care legislation passed by the House in January.
The Republican plan would leave insurance companies with more leeway to charge more than they were previously allowed under the ACA, and give more tax credits to help people pay for coverage, according to the Kaiser Family Foundation.
There are some key differences between the two bills.
The ACA’s “individual mandate” was an expansion of the federal Medicaid program.
The AHCA would expand that program, allowing states to take advantage of federal funds to offer lower-cost plans to low-income people who make too much to qualify for Medicaid.
Under the AHCA, states could opt out of the mandate and give people more leech points for health insurance coverage, but they would be required to provide coverage to everyone.
If a state doesn’t have enough people to qualify under Medicaid, the federal government would cover them.
Under AHCA’s Medicaid expansion, states would be allowed to opt out if they found that there were too few residents.
The plan also expanded Medicaid eligibility to include people who made less than $37,400 for a family of four and $54,200 for a couple.
The proposal would have allowed states to impose a three-year waiting period on people who qualified for Medicaid but were not eligible for insurance under the existing federal health care system.
The bill also would have provided tax credits for insurance plans sold through the marketplace, which could be purchased at the individual level or by small businesses.
The federal government is paying for all of these insurance subsidies.
In addition, the AHC would have repealed the individual mandate, and would have eliminated all state income-based taxes, which many Republicans said were too high and hurt businesses.
In an interview with CNN’s Wolf Blitzer, Rep. Tom Price, the Republican nominee for secretary of health and human services, touted the AHCC as a success story.
He called the AHCF “a tremendous accomplishment.”
“It’s a very good piece of work.
It’s one of the most significant pieces of legislation in the history of this nation,” Price said.
“And I think, I think that the American people will see that it’s a big piece of progress.”
Price is a former chairman of the House Budget Committee and an orthopedic surgeon who has spent decades working to lower costs and improve access to care.
He said the AHAC is a “win-win” for everyone.
“The AHCA gives states the flexibility to do what they want to do,” he said.
Trump’s plan would have given states more lee-way under Medicaid and eliminated income-tax exemptions.
States could also have expanded insurance coverage for low- and moderate-income residents.
But Price said that would not be enough.
“What they really need to do is provide a real path forward for the states to actually get down to the states where they can actually deliver on what they’ve promised, and I think it’s the most achievable way forward,” Price told Blitzer.
“That’s what I’m going to be doing.”
The Republican health care plan would also create a federal program to provide tax credits and insurance subsidies to help low- to moderate- income Americans afford insurance plans.
Under Price’s plan, the money would go toward the construction of more affordable housing, expanding access to prescription drugs, and other things that can be accomplished in a more efficient way.
The GOP plan would not expand Medicaid.
It would only expand insurance coverage to those making less than 138 percent of the poverty line.
And if the federal funding were to end and the AHCS were enacted, the bill would provide tax credit credits for people who buy insurance through the marketplaces, which would include plans offered through the exchange.
The House health care committee will hold a hearing on the AHHC at 11 a.m. EST.