The Good, the Bad and the Ugly: Summary of the New Healthcare Bill
The Republican party has just released their healthcare bill and really, it isn’t a replacement, more like an alteration of Obamacare. There’s no full repeal, but just tinkering with definitions, you know the usual way DC get’s things done.
- Gives subsidies illegal immigrants if they are working in the United States
- Subsidies based on 350% Federal Poverty Level, not 400%.
- Gets rid of business and consumer mandates with no penalty
- Qualified plans don’t need to provide abortion coverage unless it’s to save the life of the mother
- Each state gets 15-10 Billion for uninsurables
- Cadillac tax is gone
- OTC med tax is gone
- HSA penalty tax is 10%
- Prescription tax is gone
- Medical device tax is gone
- Business owners can deduct part d expense again
- Deductible medical expenses are back to 7.5% instead of 10% AGI
- Tanning tax is gone (ironic)
- Net investment tax is gone
- HSA deductibility will be adjusted every year for COLA
- Both spouses can now make catch-up contributions to a family HSA
- 60 day limitation to setting up an HSA account when first getting the plan for purposes of a current claim
- No coverage for abortion clinics
- Repeal of cost-sharing subsidy
- MLR set by states
- Grants for states battling opiod addiction (like mine)
- CHIP is reauthorized
- $5,000 app fee to create small business association health pool
- Psychiatric coverage is limited to institutionalized individuals only, and for stays up to 30 days but not to exceed 90 days
Some additional details:
- Funds two years of current Obamacare payments to insurers (which President Trump has repeatedly threatened to pull) to stabilize the insurance marketplace.
- Delays cuts to Medicaid.
- Eliminates Obamacare’s individual mandate and doesn’t include penalties for a lapse in coverage.
- Allows children to stay on parents’ plans through the age of 26.
- Does not include the House bill language to waive essential health benefit coverage, but does give states the ability to opt out of other Obamacare rules.
Recapping the House bill
- Prevents women from using federal tax credits to buy plans that cover abortion and temporarily blocks Planned Parenthood from receiving federal funds for one year.
- Lets states impose work requirements for Medicaid.
- Allows states to seek waivers from covering essential health benefits – including maternity care and emergency room trips.
- Allows states to waive an Obamacare regulation that prevented insurers from charging sicker consumers more, which would effectively undermine pre-existing conditions protections.
- Repeals Obamacare’s individual mandate but penalizes people who let their coverage lapse for 63 days.
- Replaces Obamacare’s income-based tax credits with age-based tax credits that don’t vary with local insurance costs.
- Adds $8 billion to high-risk pools for Americans with pre-existing conditions.