The “American Healthcare Act” which will help people use tax to pay for their insurance is no longer a secret. Republicans proposed an age-based tax credit unlike ObamaCare which is income-based. The bill released on Monday seeks to reduce tax credits for individuals earning more than $75,000 and households more than $150,000. There is a likelihood that individuals earning more than $215,000 will not receive any tax credits.
Although the bill would end ObamaCare’s Medicaid expansion, expansion states will still be given extra federal funds until 2020, when anyone eligible for Medicaid will sign up for it.
Recipients of coverage through expansion will still get it after Jan. 1, 2020, however, Medicaid will turn into per-capita system at this time, and federal funding will be allocated based on the number of people signed up as opposed to the traditional fee-for-service model
The Hot Air reports:
Per WaPo, the tax credits will be refundable, meaning that they’ll be available even to people who pay no federal income tax. Conservatives like Rand Paul and Mark Meadows have called that a red line, arguing that it’s nothing more or less than a Republican-created health-care entitlement.
Until now, the Republicans had been intending to veer away from the ACA subsidies that help poor and middle-class people obtain insurance, insisting that the size of tax credits should be based entirely on people’s ages and not their incomes.
But legislation to repeal the health-care law, drafts of which are expected to emerge as early as Monday evening, will propose refundable tax credits that would hinge on earnings as well as age, according to three sources familiar with the most current thinking of the House GOP leadership. It is unclear what the size of the tax credits will be compared to the ACA’s subsidies.