One of the top items on President Donald Trump’s agenda at the moment is the repeal and replacement of Obamacare — a vastly complicated piece of legislation that many people agree is broken.
Republican Congressional leadership promised that the Obamacare repeal and replacement bill would be coming after the Presidents Day recess, and now a draft of that bill has leaked out, Politico reported.
The proposed legislation has many sections that will leave Democrats seething and fiscal conservatives cheering.
This new bill would eliminate the individual mandate — one of the most unpopular aspects of Obamacare — as well as subsidies based on income. The bill would also remove all Obamacare taxes and limit Medicaid spending.
Currently Obamacare gives out subsidies based on income. In the Republican bill, those subsidies would be changed to being based on the person’s age. This aspect of the bill would take effect in 2020.
Starting in 2020, the bill would also eliminate the Medicaid expansion under Obamacare. The federal government would cap payments to states, instead of the open-ended system we have now, and those payments would be based on the number of people enrolled in Medicaid per state.
The proposed legislation would also include $100 billion for “state innovation grants” to help states cover the costs of those with pre-existing conditions which make covering them more expensive.
And last, but certainly not least, the proposed legislation would cut off all federal funding to organizations that provide abortions.
You can read the full legislation here.
A potential problem with the bill is how it is funded. The draft legislation calls for “employer-sponsored insurance” above the 90th percentile to be taxed. This is similar to Obamacare’s “Cadillac tax” which was highly unpopular.
This bill is simply where Republicans are starting from. Undoubtedly the final product will look much different — especially after it has been debated in Congress — but for now we at least know where Republicans are standing on the issue.
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