Bill #1275 Federal 115th Congress
Sponsors: Representative Pete Sessions (R-TX)
Passed by: The Budget Committee, Energy & Commerce Committee, and Ways & Means Committee
Summary: See Attached page
Where is it now? Scheduled to be on the House floor by March 24, 2017.
Stake Holders: All Americans.
Why do we care?
- Instead of subsidizing enrollees based on income, Trumpcare would provide refundable tax credits based primarily on age. (The G.O.P. plan would also account for no variation in costs between regional markets, which could disproportionately hurt rural consumers.)Vanity Fair 3/7/2017
- The G.O.P. plan offers tax credits ranging from $2,000, for individuals under the age of 30, up to $4,000 for people over 60. For individuals making more that $75,000 per year—and married couples who file jointly and make more than $150,000 per year—the tax credit would decrease by $100 for every $1,000 increase in salary.Vanity Fair 3/7/2017
- Because of differences in the tax-credit structure under the AHCA, older and poorer people would receive less assistance to gain access to care, according to analysis done by nonpartisan groups. Additionally, not every state would benefit in the same way. The Kaiser Family Foundation, a nonpartisan health-policy think tank, broke down the AHCA’s tax-credit structure compared with the Affordable Care Act’s. The key difference is that while the ACA adjusts for income level as well as the cost of living based on place of residence, the AHCA would give a flat credit based on age ranging from $2,000 annually for those under 30 to $4,000 a year for people over age 60. Based on Kaiser’s analysis, this would shift the cost of healthcare mostly for seniors and poorer Americans, who would see their insurance subsidies fall dramatically under the AHCA. Business insider. 3/14/2017
- Additionally, unlike the ACA, the AHCA does not adjust its tax credits based on the cost of living for the location where the beneficiary lives. Thus, rural areas where healthcare providers are limited and usually more expensive would see a bigger slash to benefits.
Based on an analysis by the Center for Budget and Policy Priorities of how states using the federal Healthcare.gov exchange could be affected by the new law, the biggest loser would be Alaska, with a tax-credit decline of $10,243 on average for individual insurance enrollees. Also, the individual enrollee’s tax credit in North Carolina, West Virginia, Oklahoma, Alabama, Nebraska, and Wyoming would decrease by more than $4,000 on average. Business Insider
- Estimates from congressional budget analysts and the White House’s Office of Management and Budget kept showing that the credits would be both too small to provide enough help to lower-income people and too expensive overall for a GOP determined to slash federal spending that the ACA has required. Washington Post 3/6/17
How does it meet our stated objective? The tax credit proposal seeks to lower federal spending on health care by capping individual subsidies through fixed-dollar insurance credits. This is a big change in federal health care and will especially affect poorer and older Americans. Speaker Paul Ryan and Republican congress is rushing this bill through to prevent any meaningful discussion on its many moving parts.
Local Impact: Cape Cod has an older population needing more healthcare but living on Social Security and pensions. Cape Cod is a rural area with a large seasonal economy and lower paying service level jobs making it difficult to pay for health insurance.