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What Will Change Under the Affordable Care Act Replacement Plan?

The proposed Affordable Care Act replacement plan calls for several changes that could impact healthcare for millions of Americans.
Published Online: Mar 07,2017
Laurie Toich, Assistant Editor
Yesterday, GOP lawmakers introduced their proposed replacement plan for the Affordable Care Act (ACA). Lawmakers have been divided regarding the repeal and replace plan, with some Republican congressmen and governors voicing concern over the consequences it would have on the millions insured through the health law.
 
The proposal makes major changes to private insurance and Medicaid. As reported by The Washington Post, here are some key changes:
 
Changes to Individual Insurance:
  • Tax credits would be linked to age, and would not be available for those purchasing individual insurance who earn $75,000 for 1 person, or $150,000 for a married couple.
  • Subsides will be cut completely, but states would have the option of providing financial assistance with federal money, The Post reported.
  • Expanded access to health savings accounts.
  • The pre-existing condition provision was kept, but individuals must maintain coverage or face a 30% premium surcharge.
  • Children can continue to remain on their parents’ insurance until age 26.
  • Insurers may charge older individuals up to 5 times what they charge younger individuals, according to the article.
  • Tax credits cannot be used to purchase a health plan that covers elective abortions.
 
Changes to Medicaid:
  • Federal funding for Medicaid expansion would be kept through 2019. After 2019, states will receive federal funding for already enrolled beneficiaries, but receive a lower level of funding for new beneficiaries, according to the article.
  • States will receive funding based on enrollment, costs, and medical inflation.
  • Denies funding for Planned Parenthood for 1 year.
 
Fines/Taxes:
  • No more tax penalties for the uninsured, retroactively starting in 2016.
  • Repeals taxes for high income earners, investors, health plans, and medical device companies, according to the article.
  • Removes the 10% tax for indoor tanning.