Senate Republicans on Monday released an updated version of their plan to repeal and replace the Affordable Care Act.
The legislation — called the Better Care Reconciliation Act of 2017 — originally debuted on June 22. The bill proposes to roll back much of the Affordable Care Act, the healthcare law better known as Obamacare, including various tax provisions.
The revised version of the bill includes a provision that's meant to replace the Obamacare individual mandate by punishing people whose insurance has lapsed, by locking them out of coverage for six months.
The revision closes a loophole that the original bill had that could have hurt the health insurance market. To avoid adverse selection in the individual insurance market, there needs to be a continuous-coverage provision to keep healthy people buying insurance instead of waiting until they're sick.
Healthier people help to pay into the pool and ensure that costs for everyone stay lower. To make sure that the market isn't full of exclusively sick people — resulting in higher costs and financial losses for insurers — there needs to be some reason for healthy people to sign up. The most effective way to do so is not only the carrot of coverage benefits, but also a stick to punish those that do not have coverage.Under Obamacare, this stick was the tax penalty for not having coverage. In the House Republican bill, people that did not maintain coverage the year before could have their premiums raised as much as 30% on top of normal costs as a penalty.
The bill also tweaks some of the language in section 106, which discusses stability funding for states.
*What else is in the BCRA*
The legislation proposes to scale back funding that goes toward health coverage for low-income Americans and tax credits for middle-income earners who purchase their own health insurance.
The plan would also provide funding designed to help stabilize the Obamacare insurance markets in the near term and funnel money through programs to cut off access to funding for abortion providers.
The Senate legislation contains key differences from the American Health Care Act, the House GOP's legislation to dismantle Obamacare. The disparities could be sticking points if the two chambers have to compromise on the bill, which they would have to do before it could reach President Donald Trump's desk.
But first, the legislation faces an uncertain future in the Senate, as it faces some pushback from both conservative members who think it may not go far enough in repealing Obamacare and moderates concerned about its slashing of Medicaid spending. Like the House legislation, it could be subject to significant change to get the needed number of votes.
Senate Majority Leader Mitch McConnell is pushing for a vote by the end of the week, in part to avoid further public scrutiny of the bill over the weeklong July 4 recess. Similar scrutiny periled the original version of the House legislation. McConnell can afford to lose just two members of his conference for the bill to pass.
-Here's a rundown of the key provisions that were already in the bill:-
· *Tax credits:*
· *What's in the bill:* To help people pay for insurance, the Senate bill proposes tax credits based on income level, a feature of Obamacare, rather than on age, as the House bill calls for. The bill would make anyone earning up to 350% of the poverty level eligible for credits; Obamacare caps that at 400%. It would, however, adjust the credits so they were less generous as a person aged. for instance, a person age 33 making 175% of the federal poverty limit would receive enough in credits so they were spending 5.3% of their income on premiums. For people over age 59, that would increase to 8.3% of their income. Additionally, the credits would be capped at a lower percentage of overall medical costs than those under Obamacare, making them less generous overall.
· *What it means:* While the tax credits would be more generous for older Americans than the House bill, fewer middle-income people would get financial support to pay for coverage — and those who do would get less.
· *Medicaid expansion:*
· *What's in the bill:* Obamacare's Medicaid expansion, which extended the program to those making 100% to 138% of the federal poverty limit, would be phased out over four years. 90% of the current federal funding would be provided in 2020 and it would decrease by 5% each year until 2023, after which it would be eliminated. People would not be allowed to join the expansion from 2020 onwards. The tax credits will be available to people that fall off the expansion.
· *What it means:* While this would save the federal government money, it also means the millions of people that have gained access to Medicaid would be rolled off. These people would be able to fall back on the less generous tax credit and access coverage through the individual insurance market.
· *Medicaid spending growth:*
· *What's in the bill:* The Senate bill retains the House's per capita cap for federal Medicaid spending. After 2025, however, growth in spending would shift from the consumer price index for medical care to the CPI for all goods, a lower level of growth.
· *What it means: *States would receive less funding each year from the federal government to help cover low-income Americans, and after 2025 the rate of growth would decline, leading to even deeper potential cuts for the program.
· *States can institute Medicaid work requirements:*
· *What's in the bill: *This would allow states to create a provision under which people must maintain employment, as the state defines, for a period of time, also determined by the state, in order for a person to receive Medicaid.
· *What it means:* This is another long-time wish for Republicans, but it also gives a significant amount of leeway to states to define what counts as work and for how long someone has to hold a job. It does not apply to students, pregnant women, or the disabled.
· *Cost-sharing subsidies:*
· *What's in the bill: *The bill would allocate money for cost-sharing subsidies through 2019. These payments offset the costs for insurers to offer low-income Americans plans with smaller out-of-pocket costs. The uncertainty around these payments has led to instability in the individual insurance market.
· *What it means: *This should reassure insurers desperate for guidance ahead of the 2018 plan year and could bring down premium increases for next year's individual insurance market.
· *State waivers for Obamacare regulations:*
· *What's in the bill: *The Senate bill would allow states to request a waiver to opt out of Obamacare's so-called essential health benefits, which mandate that all plans must cover 10 basic types of care. The ability to opt out of providing those benefits was a key sticking point in the House legislation, and its inclusion ultimately allowed it to pass. The Senate bill, however, would not allow states to repeal community rating, the provision mandating that all people of the same age in the same area be charged the same amount. That's a change from the House bill, which drew criticism from health-policy experts who said a repeal of community rating would allow insurers to charge people with preexisting conditions more.
· *What it means: *If a state receives a waiver for the EHBs, this would allow skimpier coverage offerings on the state's insurance market, which would have cheaper premiums but higher out-of-pocket costs.
· *Repeal Obamacare's taxes:*
· *What's in the bill: *Much like the House version, the Senate would do away with things like Obamacare 3.8% tax on investment income on people earning an annual income above $200,000.
· *What it means: *The taxes in Obamacare fall predominantly on a small percentage of wealthy Americans, who would see their tax bills fall. For instance, Republican megadonor and casino magnate Sheldon Adelson could have his 2017 tax bill cut by roughly $44 million.
· *A fund to provide grants to fight the opioid crisis:*
· *What's in the bill: *The bill would establish a $2 billion fund for states for programs to "support substance use disorder treatment and recovery support services for individuals with mental or substance use disorders."
· *What it means: *This is a one-time fund for 2018, but will likely be favored by senators from states hit hard by the opioid crisis. This was a key ask from Ohio Sen. Rob Portman.
· No funds can be used for abortions:
· *What's in the bill: *No plans purchased using funding from the bill can cover abortions. Additionally, none of the funds allocated by the bill can be given to healthcare providers that are involved with abortion.
· *What it means: *In addition to restricting anyone who uses the credits or other funds from getting plan that covers abortions, this would effectively defund Planned Parenthood. It is unclear if this will pass Senate rules.
*Here is the full updated bill:*
BetterCareReconcilistionAct.6.26.17 by Lydia Ramsey on Scribd
*SEE ALSO: The one issue that could decide the fate of the Republican healthcare bill*
*DON'T MISS: Medicaid cuts in the Senate healthcare bill are going to hit some states hard – here's who will feel it*
Join the conversation about this story »
NOW WATCH: Ivanka Trump's Instagram put her at the center of a controversy over her lavish art collection Reported by Business Insider 3 hours ago.
The legislation — called the Better Care Reconciliation Act of 2017 — originally debuted on June 22. The bill proposes to roll back much of the Affordable Care Act, the healthcare law better known as Obamacare, including various tax provisions.
The revised version of the bill includes a provision that's meant to replace the Obamacare individual mandate by punishing people whose insurance has lapsed, by locking them out of coverage for six months.
The revision closes a loophole that the original bill had that could have hurt the health insurance market. To avoid adverse selection in the individual insurance market, there needs to be a continuous-coverage provision to keep healthy people buying insurance instead of waiting until they're sick.
Healthier people help to pay into the pool and ensure that costs for everyone stay lower. To make sure that the market isn't full of exclusively sick people — resulting in higher costs and financial losses for insurers — there needs to be some reason for healthy people to sign up. The most effective way to do so is not only the carrot of coverage benefits, but also a stick to punish those that do not have coverage.Under Obamacare, this stick was the tax penalty for not having coverage. In the House Republican bill, people that did not maintain coverage the year before could have their premiums raised as much as 30% on top of normal costs as a penalty.
The bill also tweaks some of the language in section 106, which discusses stability funding for states.
*What else is in the BCRA*
The legislation proposes to scale back funding that goes toward health coverage for low-income Americans and tax credits for middle-income earners who purchase their own health insurance.
The plan would also provide funding designed to help stabilize the Obamacare insurance markets in the near term and funnel money through programs to cut off access to funding for abortion providers.
The Senate legislation contains key differences from the American Health Care Act, the House GOP's legislation to dismantle Obamacare. The disparities could be sticking points if the two chambers have to compromise on the bill, which they would have to do before it could reach President Donald Trump's desk.
But first, the legislation faces an uncertain future in the Senate, as it faces some pushback from both conservative members who think it may not go far enough in repealing Obamacare and moderates concerned about its slashing of Medicaid spending. Like the House legislation, it could be subject to significant change to get the needed number of votes.
Senate Majority Leader Mitch McConnell is pushing for a vote by the end of the week, in part to avoid further public scrutiny of the bill over the weeklong July 4 recess. Similar scrutiny periled the original version of the House legislation. McConnell can afford to lose just two members of his conference for the bill to pass.
-Here's a rundown of the key provisions that were already in the bill:-
· *Tax credits:*
· *What's in the bill:* To help people pay for insurance, the Senate bill proposes tax credits based on income level, a feature of Obamacare, rather than on age, as the House bill calls for. The bill would make anyone earning up to 350% of the poverty level eligible for credits; Obamacare caps that at 400%. It would, however, adjust the credits so they were less generous as a person aged. for instance, a person age 33 making 175% of the federal poverty limit would receive enough in credits so they were spending 5.3% of their income on premiums. For people over age 59, that would increase to 8.3% of their income. Additionally, the credits would be capped at a lower percentage of overall medical costs than those under Obamacare, making them less generous overall.
· *What it means:* While the tax credits would be more generous for older Americans than the House bill, fewer middle-income people would get financial support to pay for coverage — and those who do would get less.
· *Medicaid expansion:*
· *What's in the bill:* Obamacare's Medicaid expansion, which extended the program to those making 100% to 138% of the federal poverty limit, would be phased out over four years. 90% of the current federal funding would be provided in 2020 and it would decrease by 5% each year until 2023, after which it would be eliminated. People would not be allowed to join the expansion from 2020 onwards. The tax credits will be available to people that fall off the expansion.
· *What it means:* While this would save the federal government money, it also means the millions of people that have gained access to Medicaid would be rolled off. These people would be able to fall back on the less generous tax credit and access coverage through the individual insurance market.
· *Medicaid spending growth:*
· *What's in the bill:* The Senate bill retains the House's per capita cap for federal Medicaid spending. After 2025, however, growth in spending would shift from the consumer price index for medical care to the CPI for all goods, a lower level of growth.
· *What it means: *States would receive less funding each year from the federal government to help cover low-income Americans, and after 2025 the rate of growth would decline, leading to even deeper potential cuts for the program.
· *States can institute Medicaid work requirements:*
· *What's in the bill: *This would allow states to create a provision under which people must maintain employment, as the state defines, for a period of time, also determined by the state, in order for a person to receive Medicaid.
· *What it means:* This is another long-time wish for Republicans, but it also gives a significant amount of leeway to states to define what counts as work and for how long someone has to hold a job. It does not apply to students, pregnant women, or the disabled.
· *Cost-sharing subsidies:*
· *What's in the bill: *The bill would allocate money for cost-sharing subsidies through 2019. These payments offset the costs for insurers to offer low-income Americans plans with smaller out-of-pocket costs. The uncertainty around these payments has led to instability in the individual insurance market.
· *What it means: *This should reassure insurers desperate for guidance ahead of the 2018 plan year and could bring down premium increases for next year's individual insurance market.
· *State waivers for Obamacare regulations:*
· *What's in the bill: *The Senate bill would allow states to request a waiver to opt out of Obamacare's so-called essential health benefits, which mandate that all plans must cover 10 basic types of care. The ability to opt out of providing those benefits was a key sticking point in the House legislation, and its inclusion ultimately allowed it to pass. The Senate bill, however, would not allow states to repeal community rating, the provision mandating that all people of the same age in the same area be charged the same amount. That's a change from the House bill, which drew criticism from health-policy experts who said a repeal of community rating would allow insurers to charge people with preexisting conditions more.
· *What it means: *If a state receives a waiver for the EHBs, this would allow skimpier coverage offerings on the state's insurance market, which would have cheaper premiums but higher out-of-pocket costs.
· *Repeal Obamacare's taxes:*
· *What's in the bill: *Much like the House version, the Senate would do away with things like Obamacare 3.8% tax on investment income on people earning an annual income above $200,000.
· *What it means: *The taxes in Obamacare fall predominantly on a small percentage of wealthy Americans, who would see their tax bills fall. For instance, Republican megadonor and casino magnate Sheldon Adelson could have his 2017 tax bill cut by roughly $44 million.
· *A fund to provide grants to fight the opioid crisis:*
· *What's in the bill: *The bill would establish a $2 billion fund for states for programs to "support substance use disorder treatment and recovery support services for individuals with mental or substance use disorders."
· *What it means: *This is a one-time fund for 2018, but will likely be favored by senators from states hit hard by the opioid crisis. This was a key ask from Ohio Sen. Rob Portman.
· No funds can be used for abortions:
· *What's in the bill: *No plans purchased using funding from the bill can cover abortions. Additionally, none of the funds allocated by the bill can be given to healthcare providers that are involved with abortion.
· *What it means: *In addition to restricting anyone who uses the credits or other funds from getting plan that covers abortions, this would effectively defund Planned Parenthood. It is unclear if this will pass Senate rules.
*Here is the full updated bill:*
BetterCareReconcilistionAct.6.26.17 by Lydia Ramsey on Scribd
*SEE ALSO: The one issue that could decide the fate of the Republican healthcare bill*
*DON'T MISS: Medicaid cuts in the Senate healthcare bill are going to hit some states hard – here's who will feel it*
Join the conversation about this story »
NOW WATCH: Ivanka Trump's Instagram put her at the center of a controversy over her lavish art collection Reported by Business Insider 3 hours ago.
Senate Republicans, led by Mitch McConnell, have just released 'modest' revisions to the "draft" healthcare bill that was dropped last week. The only substantive change appears to be the addition of a "waiting period" on those who allowed their coverage to lapse for a period of 63 days or more during the prior coverage year.
Senator Bernie Sanders refused on multiple occasions to answer questions about the FBI investigation into an allegedly fraudulent loan application filed by his wife when interviewed on Fox.
*HDFC ERGO General Insurance Company*, India’s third largest non-life insurance provider in the private sector, and *Utkarsh Small Finance Bank* have signed a corporate agency agreement for the distribution of General Insurance products through the Bank’s network of branches across the country.
