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GOP's ACA replacement lowers subsidies, rolls back Medicaid expansion: 8 things to know

Politico obtained a draft of U.S. House Republican's potential ACA replacement that revealed legislators would eliminate subsidies and roll back Medicaid expansion.

Here's what you should know.

1. In its draft form, the bill would eliminate the ACA's individual mandate, insurance subsidies based on income level and the law's related taxes.

2. Republicans replaced income level-based subsidies with age-based subsidies. People under 30-years will receive $2,000. People over 60-years will receive $4,000. In a related document, HHS Secretary Tom Price, MD, said he wants lower subsidies for all age groups, Politico reports.

3. The plan replaces the individual mandate by boosting premiums if an individual's coverage lapses and they re-enroll. Lawmakers designed the penalty to discourage people from only seeking out coverage when they are sick, Politico reports.

4. The draft rolls back Medicaid spending, and gives states money from a $100 billion fund to create high-risk pools for beneficiaries with pre-existing conditions. The bill would allow states to cover residents who gained Medicaid coverage through expansion, but would receive less federal money, Politico reports.

5. Portions of the bill would be effective immediately, but others would go into effect until 2020, Politico reports.

6. Republicans believe taxing employee-sponsored health plans above the current premium's 90th percentile will pay for the program. Politico claims the idea is similar to the ACA's Cadillac tax, which Republicans fought to repeal.

Democratic and Republican economists favor the tax limit. Business and union lobbyists fought heavily against the Cadillac tax when legislators introduced the tax in an ACA provision, Politico reports.

7. Legislators are debating several issues still, including Medicaid and subsidies. President Donald Trump expects the plan will be ready in early to mid-March 2017, Politico reports.

8. The draft legislation mirrors that which Speaker of the House Paul Ryan (R-Wis.) and Dr. Price previously discussed, Politico reports.

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