House Republicans introduce Obamacare replacement plan

Jan. 5, 2017
While repeal efforts for the Affordable Care Act (ACA) are well underway, several members of Congress are honing in on possible replacements for the law. The Republican Study Committee (RSC), led by its chairman Rep. Mark Walker (R-N.C.) and Phil Roe, MD (R-Tenn), has introduced a new replacement plan, the American Health Care Reform Act. This proposal would expand the use of health savings accounts, allow insurance companies to sell plans across state lines, and would issue block grants to Medicaid programs. The bill calls for a full repeal of Obamacare starting on Jan. 1, 2018, though it does not set a timeline for replacement.

The plan is similar to House Speaker Paul Ryan’s (R-Wis.) A Better Way plan in that it would provide coverage for people with pre-existing conditions and supply states with funding to establish high-risk pools. However, the RSC’s American Health Care Reform Act would create tax deductions ― $7,500 for an individual and $20,500 for married couples ―  if they purchase a qualified health plan. Speaker Ryan’s A Better Way plan, on the other hand, would allow people to receive tax credits to purchase coverage.

Over the next several months, it is likely that the RSC’s plan will be one of several replacement proposals issued by the GOP.