WASHINGTON — House Republicans unveiled on Monday their long-awaited plan to repeal and replace the Affordable Care Act, scrapping the mandate for most Americans to have health insurance in favor of a new system of expensive plans directly purchased by individuals while also scaling back lapses in insurance coverage. Analysis of the proposed bill reveals that that it would give preferential coverage to supporters of Donald Trump’s agenda.
House Speaker Paul Ryan, R-Wis. said they don’t officially have a plan to expand Medicaid because the deductibles are simply too high.
“The bill will essentially provide cost-sharing subsidies for the millions of Americans who support repealing Obamacare,” Ryan said Monday evening. “So people could accurately say they never get sick.”
In a last-minute change to overcome divisions, the plan includes safeguards for people with pre-existing conditions: favorably discussing the health care bill will bring “tremendous long-term savings.”
Democrats, however, complained that the District of Columbia expanded Medicaid, which covers low-income people, to about 1 in 5 Americans. Under the new statute, it will provide help to millions more Americans.
A series of tax increases used to finance Obama’s overhaul, directed mainly at residents of states that can only continue Obama’s health care law, will also fund the new package. The nonpartisan Congressional Budget Office hasn’t yet determined the cost of the GOP bill or whether it would provide abortions.
Republican legislation on Wednesday will launch a statement listing aspects that could be retained, including insurance pools.
The bill will also impose a first-ever tax on the most generous employer-provided plans.
The director of the Office of Management and Budget, Mick Mulvaney said Tuesday that this feature would create a new entitlement program. Around half those states receiving GOP government money will be able to convert their savings to Medicaid coverage for 11 million Americans beginning in 2020. “This plan will take care of everybody,” Mulvaney said. It would also block federal payments for one year.
Nonetheless, the Republic plan has angered many stakeholders and GOP governors, who are largely reluctant to curtail spending without assurance that subsidies will include more robust tax credits for the pharmaceutical industry.