Goldman Explains What The Repeal Of Obamacare Really Means
by Tyler Durden
ZeroHedge.com
May 5, 2017
After months of internal discord, House Republicans finally approved a bill to overhaul Obamacare, which they have been attacking since it was enacted in 2010. While there are various nuances, here are the bill’s main provisions courtesy of Reuters:
COVERAGE
The Republican plan would maintain some of Obamacare’s most popular provisions. It would allow young adults to stay on their parents’ health plan until age 26.
The bill would let states opt out of Obamacare’s mandate that insurers charge the same rates on sick and healthy people. It would also allow states to opt out of Obamacare’s requirement that insurers cover 10 essential health benefits, such as maternity care and prescription drug costs.
The measure would provide states with $100 billion, largely to fund high-risk pools to provide insurance to the sickest patients. The bill also would provide $8 billion over five years to help those with pre-existing conditions pay for insurance.
It would let insurers mark up premiums by 30 percent for those who have a lapse in insurance coverage of about two months or more. Insurers won a provision they had long sought: The ability to charge older Americans up to five times more than young people. Under Obamacare, they could only charge up to three times more.
TAX
The bill would end in 2018 Obamacare’s income-based tax credits that help low-income people buy insurance. These would be replaced with age-based tax credits ranging from $2,000 to $4,000 per year that would be capped at upper-income levels. While Obamacare’s credits gave more help to those with lower incomes, the Republican plan would be largely age-based.
The Republican bill would abolish most Obamacare taxes, including on medical devices, health insurance premiums, indoor tanning salons, prescription medications and high-cost employer-provided insurance known as “Cadillac” plans.
Those taxes paid for Obamacare. Republicans have not said how they would pay for the parts of the law they want to keep.
The bill would also repeal the Obamacare financial penalty for the 2016 tax year for not purchasing insurance, as well as a surtax on investment income earned by upper-income Americans.
It would repeal the mandate that larger employers must offer insurance to their employees.
MEDICAID
Under Obamacare, more than 30 states, including about a dozen Republican states, expanded the Medicaid government health insurance program for the poor. About half of Obamacare enrollees obtained insurance through the expansion.
The bill would allow the Medicaid expansion to continue until Jan. 1, 2020. After that date, expansion would end and Medicaid funding would be capped on a per-person basis.
State Medicaid plans would no longer have to cover some Obamacare-mandated essential health benefits, fulfilling a Republican promise to return more control to the states
The Rest…HERE
