Just The Facts: The New Proposed American Health Care Act

care act

care act

Well, it happened. The House Republicans approved their plan to replace the Affordable Care Act late last week — and then the media and the world kinda lost its collective mind about it. …And the bill hasn’t even made it to the Senate floor yet. How is anyone supposed to communicate the facts through this political minefield? Because essentially we are still talking about some fairly boring rules to guide and govern your fairly boring health insurance, right?  Right?

With that, Moore Benefits Inc. presents your very much non-partisan, non-hyped guide to what has been proposed and passed through the House of Representatives — yes, we still have the Senate to go as well as the Presidential signature. (remember how a bill becomes a law and don’t make us sing the Schoolhouse Rock song, ok?)

Why change anything? — First of all, the ACA has been headed for a pretty big cliff since it started mainly because it created a program that needed be subsidized by federal funds and those federal funds have a deadline (which has now passed). So keeping the status quo wasn’t ever going to work. That said, here’s what’s been proposed.

State waivers — This section of the bill essentially amounts to an optional, state-level full repeal of Obamacare. It gives the states the ability to apply for a waiver that lets them opt out of most of the regulations and consumer protections that were included in the Affordable Care Act. Guess what, California is VERY unlikely to do this, so look for very few changes here in the Golden State. 

Buying insurance — The bill would no longer require people to buy insurance through the marketplaces created by the Affordable Care Act, also known as Obamacare — no more tax penalties for not having health insurance. Bill prohibits insurance companies from cutting people off or charging more for pre-existing conditions as long as their insurance doesn’t lapse for more than 63 days (hint: don’t let that happen). Again, California will most likely stick with the status quo here. 

Tax credits — Eliminates the income-based tax credits and subsidies available under the Affordable Care Act, replacing them with age-based tax credits ranging from $2,000 a year for people in their 20s to $4,000 a year for those older than 60.

Tax cuts — The bill eliminates nearly all the taxes that were included in the Affordable Care Act to pay for the subsidies that help people buy insurance. Those cuts, which add up to about $592 billion, include a tax on incomes over $200,000 (or $250,000 for a married couple); a tax on health insurers and a limit on how much insurance companies can deduct for executive pay; and a tax on medical-device manufacturers.

Pre-existing conditions – The AHCA maintains protections for people with pre-existing conditions so all of the memes going around about denying coverage are as fictional as a comic book. …And not nearly as entertaining. 

And that’s it. Hey, look the world is still rotating, business is still getting done and don’t look now, but the changes aren’t really much at all.  I guess looking at these things in a factual manner can now be considered one of our superpowers. If you or any of your employees have any questions about the current law or any future proposed ones, call us and we can help!

Learn Moore

Here Is What’s In The House-Approved Health Care Bill

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