House Ways and Means Committee Chairman Kevin Brady and House Energy and Commerce Committee Chairman Greg Walden released legislation to repeal and replace Obamacare Monday, which would effectively abolish the penalties linked to the individual and employer mandate and repeals Medicaid expansion by 2020.
The bill’s architects said it’s designed to give the powers back to the states, providing a Patient and State Stability Fund, which would allot $100 billion over the course of a decade to help stabilize the markets and provide funding for low-income Americans.
To incentivize those who don’t receive insurance through work to purchase coverage, a tax credit based on age would be provided for those looking to buy plans. Following concerns from the conservative wing of the party after the leak of a discussion draft of the bill, language was changed to prevent the credits from becoming an entitlement available to high-income brackets.
Purchasers under 30 would receive a $2,000 tax credit, $2,500 for those between 30-39, $3,000 the 40-49 age bracket, $3,500 for those between 50-59 and $4,000 for the over 60 bracket. Money left over would then be eligible to be put in a Health Savings Account (HSA) — the amount individuals are allowed to put in HSAs would also be increased under the proposal.