February 27, 2017

OBAMACARE LITE:

Why the GOP's latest split over ObamaCare was entirely predictable (Joel Dodge, February 27, 2017, The Week)

Republican leaders, of course, are dead set on repealing ObamaCare, but feel political pressure to avoid throwing people off of their insurance. That will require continuing to subsidize people who cannot afford insurance on their own. To that end, Speaker of the House Paul Ryan recently released an outline of a plan that would provide refundable tax credits to help people afford coverage.

This is actually very similar to how ObamaCare works. A key part of the Affordable Care Act is that it provides tax credit subsidies, called "advance refundable tax credits," to help individuals afford health insurance. These subsidies can be substantial depending on your income -- for some people, the subsidies cover the entire cost of their health insurance premiums. The biggest difference between ObamaCare and Ryan's subsidies is who will receive the bulk of the credits -- ObamaCare's gives more to the poor; Ryan's to the elderly, irrespective of income -- but the mechanism is largely the same.



Posted by at February 27, 2017 8:31 AM

  

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