House Republicans are circulating a draft ObamaCare replacement plan that would get rid of its core component — subsidies for those with limited incomes who can’t afford the premiums, according to a report.
The bill would dismantle other key elements of President Obama’s signature legislation, including expanded Medicaid and the individual mandate, which imposes financial penalties on people who do not obtain medical insurance, Politico reported.
Subsidies would no longer be based on income, but on the recipient’s age.
Starting in 2020, applicants would be eligible for tax credits to cover premiums. A person under 30 would get $2,000. Those over 60 would get twice as much.
The plan could be unveiled as early as next week.
Funding, including money to states to cover some people with pre-existing conditions, would come from a system similar to ObamaCare’s “Cadillac tax” on employers with lavish health plans.
The leaked draft was immediately slammed by Democrats.
“This isn’t a replacement, it’s a recipe for disaster,” Sen. Chuck Schumer (D-NY), the Senate Democratic leader, said in a statement.
Meanwhile, Bloomberg News reported that top health-insurance executives will meet Monday with President Trump.