March 2, 2017 | Rosemarie Day

Managed Healthcare Executive: “Top 3 things to know: GOP ACA replacement plan”

2. It lacks cost-related details that make it possible to compare it with the current coverage provisions of the ACA. 

One example is the tax credits the plan calls for, according to Rosemarie Day, president of Day Health Strategies.

The plan would provide all Americans access to a portable, monthly tax credit that they can use to buy a health insurance plan. The proposal is based on age, so as individuals’ health needs evolve over time, so will their monthly, portable tax credit.

The dollar value of the proposed tax credits is unclear, says Day. She believes, however, that they are unlikely to be as “generous” as the ACA subsidies, given other aspects of the proposal.

“And the structure of the proposed tax credits—being based on age rather than income—will have the effect of redistributing healthcare subsidies from lower to higher income people, increasing the likelihood that lower income people will drop their insurance coverage,” Day says.

3.   The Medicaid expansion would be repealed in its current form.

The GOP plan would put the program on a budget with a per capita allottment, leaving states to decide how to continue funding their Medicaid expansion (if they opted to expand the program).

“This proposal is politically controversial, including in states with Republican governors, due to the cuts that states would have to make to their Medicaid programs,” Day says.

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