The House has two plans to replace the Affordable Care Act. Separate House committees will begin meeting to discuss and bring the plans together this week.

The plans would replace government healthcare subsidies under the ACA with tax credits, take funding from Planned Parenthood, a remove the penalty for those who do not have a healthcare plan – the individual mandate.

It keeps a popular part of the ACA that allows children to stay on their parent’s healthcare plan until age 26, and while it does away with the individual mandate that forces everyone to have coverage or pay a penalty, it replaces that penalty by allowing insurers to charge up to 30 percent more for those you have a gap in-between coverage.

If you lose your job and healthcare coverage and that creates a time gap between coverage, you would still pay a penalty by paying higher rates.

Pluses

  • Young adults can stay on their parents healthcare plans.
  • No individual mandate.
  • People cannot be denied healthcare due to pre-existing conditions, as the ACA outlines, and insurers cannot charge those people more due to their conditions.

Minuses

  • Tax credits are too small to help the poor and too large to keep from inflating the federal  budget.
  • Planned Parenthood would receive no Medicaid reimbursements for women’s health care.
  • Replaces Insurance subsidies with tax credits and with grants to states.
  • Many lower income families would lose coverage under the new proposals.

Some GOP members could balk at the new proposals due to the cost of the program and concerns Trumpcare would leave millions without any healthcare coverage. This would not set well with many of their constituents as they run for re-election.

Rand Paul (R-KY), opposes the plans based on the income tax credit. “Still have not seen an official version of the House Obamacare replacement bill, but from media reports, this sure looks like Obamacare Lite,” he remarked.

Republican Rob Portman of Ohio and three other GOP Senators said they were troubled the new proposals would cause instability in Medicare expansion and flexibility for the states.

Democrats will likely stand together in opposition to the plans. Charles Schumer (D-NY), said “Trumpcare doesn’t replace the Affordable Care Act, it forces millions of to pay more for less care.”

Republicans like House Majority Leader Paul Ryan (R-Wis), will be delighted to cut funds from Planned Parenthood and make his anti-abortion base grateful. There will be a backlash from Democrats and Progressives who support pro-choice.

The tax credits are estimated to range from $2,000 a year for the poorer wage earners under age 30, and $4,000 a year for older Americans over the age of 60.

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