The Republicans, lead by House Ways and Means Chairman, Congressman Kevin Brady, initiated a proposal to abolish the Affordable Care Act. Both the House Ways and Means Committee and the House Energy and Commerce Committee voted to advance the American Health Care Act. This bill eliminates the federal tax penalty for individuals that do not have health coverage. The American Health Care Act will take the insurance out of the federal government and allow the states to offer quality affordable options. Premiums for the existing Affordable Care Act are constantly soaring with inadequate coverage. The newer, American Health Care Act, puts the medical staff and patients in charge of choosing the plan with more choices and lower costs.
The American Health Care Act would replace income based subsidies with refundable tax credits based on age and income with a 30 percent surcharge if individuals allow insurance to lapse. The bill would offer monthly tax credits to individuals and families with incomes below $75,000 who do not receive insurance through work or government programs. Tax credits would start at $2,000/year for individuals under 30 years of age. Individuals over 60 could receive $4,000 in tax credits. Tax credits would not be available to pay for insurance policies if they include abortions. Medicaid would not be eligible to use at Planned Parenthood clinics.
Individuals earning $200,000 to $999,999 could receive sizable tax cuts. The tax cuts are estimated to save 37 billion by 2026. The Congressional Budget Office is expected to have an analysis of the total cost to replace the Affordable care Act and its contribution to the federal deficit soon.
The bill must pass in both the House and the Senate before going to the President for his signature. Until it passes, the Affordable Care Act or ObamaCare will still be in place.