House GOP Plan on ACA Draws Controversy

capitol-buildingA House Republican plan that would dismantle the Affordable Care Act (ACA) has generated dissension among Republican House members casting more confusion and uncertainty over the future of the health care law.

Among the provisions in the House’s draft legislation are:

  • Eliminating the individual insurance mandate;
  • Rolling back federal Medicaid spending by eliminating Medicaid expansion;
  • Funding Medicaid through either block grants to the states or capping the amount for each enrollee;
  • Offering individuals tax credits based on age rather than tax subsidies for health insurance coverage as is currently the case under the ACA.

To help stabilize the individual insurance markets, the proposal would tighten the enrollment period and penalize those who do not pay their premiums in a timely manner and create high-risk pools among other measures. This Politico article gives a comprehensive summary of what is contained in the draft proposal.

Governors in states that have expanded Medicaid under the ACA as well as those in states that have not are concerned about what the draft legislation would mean to their Medicaid programs. It is likely under the House draft legislation that states would have more flexibility on how to allocate funding, but there would be fewer federal dollars to help serve the Medicaid population.

President Trump has promised to address the repeal and replacement of the ACA in his address to Congress tonight, Tuesday, Feb. 28.

 
 

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