To boost their chances of repealing Obamacare, House Republicans have made their replacement plan look a bit more like Obamacare.
The plan, unveiled Monday evening by the House Ways and Means and Energy and Commerce committees, would create refundable tax credits for the purchase of insurance to replace Obamacare premiums subsidies. The tax credits would range from $2,000 per person for those in their 20s to $4,000 for those in their 60s. Like Obamacare subsidies, the House GOP tax credits would phase out for those with higher incomes; the House bill begins reducing them for those earning above $75,000 for single filers and $150,000 for couples.
Like Obamacare, the GOP's "American Health Care Act" would assure that children could stay on their parents' health plans until age 26 and that people with pre-existing conditions must be offered coverage. To allow states to help those with pre-existing conditions who would be sure to face higher premiums under this plan, the Republican proposal would set aside $100 billion over 10 years that states could use to subsidize those high-risk, high-cost patients.
Like Obamacare, the GOP plan would preserve the so-called Cadillac tax on high-cost insurance plans provided by employers. Republicans had initially considered expanding the tax to hit a larger number of health plans, but backed off in the face of opposition.