By Tom Quiner
√ The individual mandate is eliminated. You will not be fined for failing to purchase health insurance.
√ Companies with 50 or more employees will no longer face taxes and penalties if they do not provide health insurance to their employees.
√ Insurance companies must still offer insurance if you have pre-existing conditions. However, if your previous coverage elapsed 63 days or more in the previous twelve months, insurers can charge you 30% more, creating an incentive to maintain coverage, while discouraging gaming the system.
√ The amount of money states receive per Medicaid enrollee will be capped. Other Medicaid payments will be tightened up.
√ Insurers will be allowed to charge higher premiums to older customers, who statistically consume more healthcare services. However, this will be offset by tax credits which increase with age. This is significant since a tax credit reduces reduces tax exposure on a dollar for dollar basis.
√ Tax credits can’t be used to pay for insurance coverage that includes human abortion services, except for limited exceptions.
√ Obamacare subsidies are eliminated. However, they will be offset by a $100 billion Patient and State Stability Fund over the next nine years, which will be block-granted to states for them to deploy in a way that best fits their residents. This effectively builds on an approach that was in place in a majority of states prior to the passage of Obamacare.
√ Tax-exempt health savings accounts will be increased from $3,400 for individuals and $6,750 for families now to $6,550 and $13,100. Their use is broadened to include more over-the-counter pharmaceuticals limited by Obamacare.
√ Young adults under 26 can remain on their parents’ plans.
There are the basics without fanfare or emotion. It’s not perfect. But this blog supports it and encourages Congress to vote YES.