Will Republicans replace Obamacare?
Right now, two presidential hopefuls have released their "Obamacare replacement plans"...
Sen. Marco Rubio (R-FL) and Wisconsin Gov. Scott Walker both made their proposals public on Aug. 17. The two politicians each outlined their intentions for the healthcare industry online. Politico published Rubio's "My Plan to Fix Healthcare" article. Walker's proposal was posted on his own website in the form of a 15-page, full-color PDF.
Now that these two have revealed that they intend to repeal and replace the Affordable Care Act, it's likely that the rest of the GOP candidate brigade will proffer their own versions. Money Morning intends to keep you fully up-to-snuff on what each presidential hopeful proposes.
Here's a look at the first two...
Will Republicans Replace Obamacare? An Alternative Plan Breakdown
Scott Walker's Obamacare Replacement Plan:
- A key element to Walker's plan replaces Obamacare's wealth-based subsidies for health plans with flat tax credits, meaning everyone would be eligible for the same credit amount no matter their income level. These credits would range between $900 and $3,000 per person, wrote CNN on Aug. 18, starting at $900 for individuals 17 years old or younger. Over time, they would escalate to $3,000 for individuals between the ages of 50 and 64.
- The plan also proposes "capped allotments" to states for some parts of Medicaid while allowing acute care payments to continue uncapped. An acute medical condition (opposite of a chronic medical condition) consists of severe symptoms that run a short course. Acute medical care is the level of treatment that tends to these serious, but short-lasting, conditions.
- Consumers on Walker's plan would receive tax-sheltered health savings accounts (HSAs). This type of program is already popular with individuals with high-deductible plans, stated The Wall Street Journal on Aug. 18. Furthermore, it would provide a $1,000 refundable tax credit to anyone who signs up.
Marco Rubio's Obamacare Replacement Plan:
- Like Walker, Rubio also proposes tax credits Americans can use to purchase health insurance. The value of these credits would increase annually, Rubio stated in his Politico outline on Aug. 17.
- The Florida senator's plan also cuts Medicaid in order to introduce "block grants." These grants, Rubio wrote, would limit the government's commitment to Medicaid coverage and require seniors to purchase their insurance on the marketplace with a stipend.
- Lastly, individuals on Rubio's proposed plan with pre-existing conditions would be able to find coverage through their state's federally supported "high risk pools." And Americans living in high-cost states would be eligible to look for coverage across state lines.
Stay tuned to Money Morning for more on the 2016 presidential election. You can follow us on Twitter @moneymorning or like us on Facebook!
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