Tax Credits will replace Obamacare in 2020

[Outdoorsygal]

Summary

-Keeping the ability for children to remain on parents plan up to age 26

-Keeping non-descrimination of those with prior health issues, everyone pays the same

- 30% FINE of the cost of each monthly premium will be imposed by health insurers if there is a break in health coverage

-Tax Credit is REFUNDABLE.- Tax Credit available to those whose modified adjusted gross income is up to $75K per yr or $150K for a couple.

Credit applied by age-
To age 29 yrs- $2000
30-39 yrs- $2500
40-49 $3000
50-59-$3500
60+ $4000
Max $12,000 Per Family

https://www.washingtonpost.com/powerpost/new-details-emerge-on-gop-plans-to-repeal-and-replace-obamacare/2017/03/06/04751e3e-028f-11e7-ad5b-d22680e18d10_story.html?utm_term=.5c30e89dc619

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[Outdoorsygal]

Here are the bills...

http://energycommerce.house.gov/sites/republicans.energycommerce.house.gov/files/documents/AmericanHealthCareAct.pdf

https://waysandmeans.house.gov/wp-content/uploads/2017/03/AmericanHealthCareAct_WM.pdf

[MooseBucks]

7 years of demanding a change and all the was presented is a worse program. My understanding is the 30% fine would be on the annual premium for a lapse in coverage for preexisiting conditions. Considering everyone in the US has a preexisiting condition this could incredibly costly when one of 60% of Americans that live paycheck to paycheck lose their job and can't afford their health coverage. I've been a republican my whole life however I feel in congress there is now a lack of regard for our fellow Americans. There is a reason that countries with single payer health systems pay much less for health insurance and receive a similar level of care. We need to open our eyes and stop lining the pockets of executives.

[YULACU]

According to the NYT, "Under current rules, insurers cannot charge older adults more than three times what they charge young adults for the same coverage. House Republican leaders would allow a ratio of five to one — or more, if states choose."


AARP is readying its forces.

[Outdoorsygal]

7 years of demanding a change and all the was presented is a worse program. My understanding is the 30% fine would be on the annual premium for a lapse in coverage for preexisiting conditions. Considering everyone in the US has a preexisiting condition this could incredibly costly when one of 60% of Americans that live paycheck to paycheck lose their job and can't afford their health coverage. I've been a republican my whole life however I feel in congress there is now a lack of regard for our fellow Americans. There is a reason that countries with single payer health systems pay much less for health insurance and receive a similar level of care. We need to open our eyes and stop lining the pockets of executives.

So true. More info-
In reading it, it appears to be 30% is AFTER you sign up.
Let's say that you sign up for health insurance whenever (no individual mandate so no timeframe required).
Now unable to pay 5 months of premiums.. CNN reported a 63 day grace period
So that would leave about 3 months at 30% of the monthly premium owed.
This is one reason why keeping medicaid expansion is imperative

IMHO, this is similar to the individual mandate in that it essentially mandates you have medical insurance
What if it takes longer than 63 days to switch health insurance companies?
This scenereo is very likely because the health plans can craft their coverage any way they like to save $$.

A few Senators demanded that medicaid expansion remain or they'll oppose it
So they need to appease them in order to get enough votes.
Medicaid Expansion was remaining but in limited form thru a grant type block
Counties decide who was sicker thus who gets the coverage

It should remain in some solid form because otherwise, people will die. It's that simple.
No numbers have been released and many say Republicans are trying to push this through very fast.
So the bill will pass though though it isn't fully understood.

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[Outdoorsygal]

I wonder if this is a possible income opportunity?
Let's say we obtain an HDHP for myself and husband
I will be 50 by the time this goes thru and he will be under 60.
We will qualify for $7000 a yr of refundable tax credits for both. Obtainable if we file jointly.

With being able to deposit about 2x more into the HSA's, if the actual HDHP plans cost $5000, would that leave $2000 to be deposited into the HSA?

If my company already offers a plan which covers my needs, can I just keep my $3500 refundable tax credit?
Is it only for those people who don't have insurance via their employers?
I bet they make employers certify that their employees were not offered health insurance. Thus cutting many out.

This bill blueprint bill is so vague, even though it has the fancy legaleeze in it.
It reads the IRS can pay the health insurance companies (OR WILL DO IT) "on your behalf"
Could mean it is mandated IRS only transfers the money to your health insurer.
Which means it's not a "refundable tax credit" really

Doubtful anyone has an issue with doubling the amount of $$ allowed into an HSA so that part should remain uncontested.

[LivingAlmostLarge]

I thought you can be charged more for preexisiting condition but not turned down coverage? Which is basically the same thing.

[disneysteve]

I thought you can be charged more for preexisiting condition but not turned down coverage? Which is basically the same thing.

Not the same thing at all.

There is a huge difference between having no access to coverage and having access at an elevated rate.

I realize that for many people, those options may be effectively the same if they can't afford the premiums, but fundamentally they definitely aren't the same.

[TexasHusker]

There certainly should be a penalty for lapsing coverage off and on depending on your health. That's not insurance any more. It's welfare. Big difference.

And those penalties certainly SHOULD be payable to the insurance companies, since they are the ones being damaged by people getting back on when they are SICK.

I really wonder about our citizenry these days, to think we can just hop off and on insurance at our pleasure and expect someone ELSE to pay for all of our expenses. That's not only outrageous, it's dishonest.

[Outdoorsygal]

There certainly should be a penalty for lapsing coverage off and on depending on your health. That's not insurance any more. It's welfare. Big difference.

And those penalties certainly SHOULD be payable to the insurance companies, since they are the ones being damaged by people getting back on when they are SICK.

I really wonder about our citizenry these days, to think we can just hop off and on insurance at our pleasure and expect someone ELSE to pay for all of our expenses. That's not only outrageous, it's dishonest.

Yes but the insurance companies charging major inflated prices is also dishonest. Two can play at that game.

Thank God I married into a large family of physicians and nurses. Sure came in handy in the beginning years

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[YULACU]

These tax credits don't seem to target the people that need them the most. For example, I pay $50 a month for the HMO my employer provides. Yet, under this plan I would qualify for a credit that exceeds my annual health insurance premiums. If the point is to make healthcare more affordable to people, then giving me a refundable tax credit seems like a waste of tax dollars.

[Outdoorsygal]

These tax credits don't seem to target the people that need them the most. For example, I pay $50 a month for the HMO my employer provides. Yet, under this plan I would qualify for a credit that exceeds my annual health insurance premiums. If the point is to make healthcare more affordable to people, then giving me a refundable tax credit seems like a waste of tax dollars.

I cannot see how this is possible.

From what I understand, and maybe i am mistaken, those with health insurance already via their employer cannot qualify for a refundable tax credit. I pay $37 a month thru my employer.

Meaning even if I set up an HDHP with my employer, which is likely my choice this coming year, I wouldn't qualify for their refundable tax credit anyhow.

Also this refundable tax credit comes to your HSA acct. Not sure if you are allowed to use it for anything other than healthcare. This pertains to EVERY healthcare plan presented, whether it be the GOP's, Rand Pauls, etc....

Not directed to you but all of this health insurance junk is pretty confusing

[MooseBucks]

There certainly should be a penalty for lapsing coverage off and on depending on your health. That's not insurance any more. It's welfare. Big difference.

And those penalties certainly SHOULD be payable to the insurance companies, since they are the ones being damaged by people getting back on when they are SICK.

I really wonder about our citizenry these days, to think we can just hop off and on insurance at our pleasure and expect someone ELSE to pay for all of our expenses. That's not only outrageous, it's dishonest.

So I'm making minimum wage and Walmart lays me off tomorrow...I can no longer afford health insurance because my 3 year old needs food and I have to pay our electric & gas bill because the temperature outside is a high of 32 for the next 10 days. So I apply everywhere I can but there aren't many jobs because the military base closed a few years back. I finally get a job 3 weeks later at the local fast food joint but don't get paid for another 2 weeks. So now when I finally get a paycheck I need to choose from paying my rent, getting some food, car payment and health insurance...What should I choose????

My daughter has asthma and needs her inhaler or she could die. So because she is SICK I should be paying the penalty? I'm a bad citizen because I hopped on and off insurance at my pleasure and expect someone ELSE to pay for the expenses??

This is the situation for millions of people in our country and we have folks taking the position that this is their fault. It makes me sad and sickened that we have come to this.

[YULACU]

I cannot see how this is possible.

From what I understand, and maybe i am mistaken, those with health insurance already via their employer cannot qualify for a refundable tax credit. I pay $37 a month thru my employer.

Also this refundable tax credit comes to your HSA acct. Not sure if you are allowed to use it for anything other than healthcare. This pertains to EVERY healthcare plan presented, whether it be the GOP's, Rand Pauls, etc....

Not directed to you but all of this health insurance junk is pretty confusing

I think you're correct. I just read another news article which stated that the credit is to be paid directly to the insurer and the individual is responsible for the difference between the tax credit and monthly premium.

[TexasHusker]

So I'm making minimum wage and Walmart lays me off tomorrow...I can no longer afford health insurance because my 3 year old needs food and I have to pay our electric & gas bill because the temperature outside is a high of 32 for the next 10 days.

This is the situation for millions of people in our country and we have folks taking the position that this is their fault. It makes me sad and sickened that we have come to this.

This is NOT the situation for millions of people in our country: Folks making minimum wage aren't paying for health insurance and haven't in decades. They are on Medicaid. If they are not on Medicaid, it means they haven't bothered to complete their paperwork.

Many of the "millions" on Obamacare who are "going to lose their coverage" are people like me: I had a perfectly fine individual policy by John Alden Life before it was outlawed and I was required by law to buy a much more expensive Obamacare plan.