Prepared 6.26.17 for LCI Issues by Rob Richardson
The Better Care Reconciliation Act – Senate GOP Healthcare Bill
- Allows insurers to change the rating rules and potentially charge older clients more than five times what a younger person would pay for the same plan;
- Ends cost-sharing reduction payments to insurers, which reduce out of pocket expenses for lower income individuals in 2020;
- Reduces the maximum eligibility amount for an individual or family to qualify for an advance premium tax credit from 400% of the federal poverty level to 350%;
- Allows stats to pick and choose which benefits would be mandated for their residents through a waive system;
- Repeals or reduces 10 different taxes – the highest being the
- Medicare Tax on Unearned income (3.8%) for individuals earning over $200K and families over $250K on net investment income;
- Additional Medicare payroll tax (0.9%) on payroll earnings over $200K for an individual and $250K for families.
- Allows states to add work requirement to “able-bodied” Medicaid recipients for fiscal years after 2024;
- Beginning 2025 federal Medicaid reimbursements will increase by the U.S. general rate of inflation rather than the medical rate of inflation (which rises faster);
- States can impose more frequent eligibility audits on Medicaid recipients (currently on once per year);
- Health Savings Account contributions increase to $6,550 for an individual and $13,100 for a family.
- Medicaid cuts disproportionately hurt rural hospitals, 700 of which across the country already teeter on the brink of closure. (NPR’s Bram Sable-Smith);
- Cut almost $1 billion in funding for the Prevention and Public Health Fund, which provides 12 percent of the CDC’s budget, starting this October.;
- Appropriates only $2 billion in fiscal year 2018 to address the opioid drug epidemic;
- After 2019, subsidies that help the vast majority of people with ACA health plans afford their premiums would stop.