Today, leaders presented their top members with an outline of their replacement plan for Affordable Care Act. This new plan will be based on tax credits to subsidize individual insurance plans, ultimately lowering federal expenditures to the 31 states that expanded Medicaid eligibility.
The plan isn’t too fleshed out yet. Congress didn’t say how the government would pay for the plan or if less people would be eligible for coverage.
So far, the plan would greatly change the healthcare landscape. For one, it would greatly reduce Medicaid spending. In addition, people will be given tax credits to buy their own insurance plans.
Speaker Paul Ryan said: “We intend to introduce legislation to repeal and replace Obamacare. It has become increasingly clear that this law is collapsing. People’s premiums are getting higher and higher. Their deductibles are soaring, and their choices are dwindling.”
During the transition between Obamacare and the new plan, there would still be subsidies—but less would be offered to older citizens and more to younger ones.
There is a lot of anxiety in America over healthcare right now. Will real change be possible? Or will the representatives’ constituents voice anger over the Obamacare replacement?
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