Eyes have been on Washington in recent months as President Trump begins to put into action some of the claims made throughout his candidacy. One long-awaited claim has finally been revealed though: his, and the GOP’s, promise to repeal and replace Obamacare. Now that their plan has been disclosed to the general public, many are wondering how they specifically may be affected. Below are several areas of distinction between the GOP’s plan and Obamacare, and what that means for you, the taxpayer.

1. Changes in Age-based Premiums
   Under Obamacare, insurance companies could vary their premiums based on features such as location, tobacco use and age, but there was a 3-to-1 limit based on age, meaning the premium for an older individual could not exceed over three times the amount charged for a younger person purchasing the same plan. The GOP plan would allow insurance companies to charge older individuals up to five times the amount of younger enrollees.

2. Changes in Tax Credits
   Unlike Obamacare, which subsidized insurance for those using government-run insurance exchanges, providing credits based on the enrollee’s income and cost of coverage in their area,  the GOP’s plan would look to end cost-sharing subsidies and attach credits to age and income (rather than cost of coverage). Credits would start at $2,000 for those in their 20’s and increase steadily, reaching to $4,000 for those over 60. The credits would only be accessible to individuals making $75,000 or less and households making $150,000 or less.

3. Changes the Insurance Mandate
   Another significant change would be the elimination of the insurance mandate created by the ACA, which requires individuals or employers to either buy or offer coverage, or face penalties. The GOP’s plan would remove those penalties for both individuals and employers, but would permit insurance companies to enforce higher premiums for one year on individuals who only add coverage when they need care.

4. Changes in Medicaid
   Obamacare and the GOP plan also vary considerably in how they approach Medicaid. Many who acquired new coverage under Obamacare did so through Medicaid provisions, including an expansion that covered those earning up to $27,725 (for a family of three), as well as a federal coverage of at least 90% for states that expanded their coverage and insured those newly eligible. The GOP plan would look to eliminate the expansion, only providing extra funding to states for those enrolled before 2020. And, rather than providing open-ended matching for Medicaid beneficiaries, the GOP plan proposes dispensing a set amount of money to states based on enrollment numbers in 2016.

The GOP’s proposal would keep popular provisions such as allowing adults under the age of 26 to be covered under their parent’s plans and continuing to bar insurers from denying coverage to those with pre-existing conditions. Because the plan is still in its infancy, and will most likely be amended, taxpayers should be patient before presuming they may qualify for credits or that their coverage will be impacted based on age or income and would be advised to maintain current coverage until a full plan is passed.

If you have any questions or would like to discuss how the health care law changes may affect you, please contact me at [email protected].