House Republicans presented a health insurance plan in which the party would replace the Affordable Care Act with tax credits, according to Wall Street Journal.
Here are six points:
1. The plan, which GOP members refer to as a "healthcare backpack," would allow Americans to use the tax credit to pay for private insurance. Republicans said the backpack gives Americans, "financial support for an insurance plan chosen by the individual and can be taken with them job-to-job, home to start a small business or raise a family, and even into retirement years."
2. Republicans didn't specify the credit's exact value, but said the government would provide the credits on an advance basis monthly. GOP members parallel Donald Trump's health plan in that they proposed forgoing the mandate requiring Americans to buy health insurance or face a penalty.
3. The proposal also sets out to expand health savings accounts, and would allow Americans to purchase plans offered in other states. Donald Trump's health plan also advocates for expanding HSAs.
4. However, unlike Mr. Trump's plan, the GOP proposes providing Medicare beneficiaries the option of obtaining a government subsidy to buy private, fee-for-service insurance via a newly created Medicare insurance exchange.
5. Drawing on an idea Sen. John McCain (R., Ariz.) supported when he ran for president in 2008, the GOP is proposing a mandate that workers pay taxes on the value of the health insurance their employer offers. Rather than getting rid of the tax break, the proposal would set limits on how much of health insurance costs could be excluded from taxes. The proposal did not delve into when premiums would no longer be excluded from taxation, however.
6. Additionally, the plan would allow children to stay on their parents' health plans until they are 26, and payers could not turn away consumers during the renewal process if consumers become sick. Consumers also have a one-time opportunity to sign up for coverage, and thereafter would be mandated to maintain insurance so they could benefit by purchasing the insurance at the same price, no matter their medical history.
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