Posted on 03/08/2017 11:38:31 AM PST by nickcarraway
The plan to repeal and replace Obamacare unveiled by House Republican leaders on Monday orders insurance companies to charge people 30 percent more in premiums for a full year if they did not have insurance for 63 days or more in the previous year.
The sections of the Republican bill that create this mandate on insurance companies are titled: “Continuous Health Insurance Coverage Incentive,” and “Encouraging Continuous Health Insurance Coverage.”
The first subsection of the “Encouraging Continuous Health Insurance Coverage” section is entitled: “Penalty Applied.”
This subsection says insurance companies “shall” impose the penalty.
“[A] health insurance issuer offering health insurance coverage in the individual or small group market shall, in the case of an individual who is an applicable policyholder of such coverage…increase the monthly premium rate otherwise applicable to such individual for such coverage during each month of such period, by an amount determined under paragraph (2),” says the bill.
Paragraph 2 goes on to explain that the “increase” in premiums the government will require is 30 percent over the normal premium for the plan.
“The amount determined under this paragraph for an applicable policyholder…is the amount that is equal to 30 percent of the monthly premium rate otherwise applicable to such applicable policyholder for such coverage during such month,” the Republican bill says.
The proposed legislation goes on to say that the burden of proof will be with the individual American seeking to buy health insurance. If they cannot document that they did not have a 63-day lapse in insurance during the previous year, they must pay the 30-percent penalty.
The person who must pay the penalty, the bill says, is “an individual who…cannot demonstrate (through presentation of certifications described in section 2704(e) or in such manner as may be specified in regulations, such as a return, or a statement made under section 6055(d) or 36C of the Internal Revenue Code of 1986), during the look-back period that with respect to such enrollment period, there was not a period of at least 63 continuous days during which the individual did not have creditable coverage.”
The penalty also will be assessed against young people who age out of their parents’ plans and do not sign up for their own insurance in the next open enrollment period.
It will apply, the Republican bill says, “in the case of an individual who had been enrolled under dependent coverage…and such dependent coverage of such individual ceased because of the age of such individual, is not enrolling during the first open enrollment period following the date on which such coverage ceased.”
The summary of the proposal published by the House Energy and Commerce Committee also points to this 30-percent increase in insurance premiums that the government will order insurance companies to impose on people who failed to buy insurance for 63 days.
“Beginning in open enrollment for benefit year 2019, there will be a 12-month lookback period to determine if the applicant went longer than 63 days without continuous health insurance coverage,” says the summary.
“If the applicant had a lapse in coverage for greater than 63 days, issuers will assess a flat 30 percent late-enrollment surcharge on top of their base premium based on their decision to forgo coverage,” says the summary. “This late-enrollment surcharge would be the same for all market entrants, regardless of health status, and discontinued after 12 months, incentivizing enrollees to remain covered.”
At the same time, the House Ways and Means Committee’s summary of the amendments that Republican leaders are proposing to the Obamacare law points out that one of those amendment would reduce the Obamacare penalty for not signing up for insurance to “zero.”
“Under current law, most individuals are required to purchase health insurance or pay a penalty,” says the Ways and Means summary. “This section would reduce the penalty to zero for failure to maintain minimum essential coverage; effectively repealing the individual mandate.”
In sum, the Republican plan to repeal and replace Obamacare would eliminate from existing law the penalty for not signing up for insurance and add to existing law a one-year 30 percent premium hike for anyone who fails to buy insurance for 63 days or more.
WHY?????
The Republican Party needs to come to an end now. We must not allow this crap.
Write your congresscritter and say NO to RyanCare
As long as the individual mandate is gone, so what? I don’t care what they charge as long as I always have the option to just ignore it and opt out of coverage altogether...
yup in there. i’ve read that. still reading the rest though.
The only thing that really upsets me is MORE refundable tax credits. Stop the welfare schemes in the federal tax code! No more.
BTW, how can it be RE-fundable if it was never paid in the first place. Crazy stuff! Stop it. Stop it. Stop it.
Car insurance companies use to do this. Not sure IF they still do or not. This was in Texas . . .
How effin sad is this....WOW.
These so called “representatives of the people” are SCUM!
Looks like the insurance companies are still writing the laws directly. Can’t imagine Trump would OK it.
Maybe to keep people from buying a plan, filing a huge claim, then cancelling? That is almost a requirement when insurers are required to insure in spite of pre-existing conditions.
Penalize something, get less of it.
That is perfectly reasonable. It keeps people from waiting until something is wrong with them before getting insurance.
Federal control of healthcare is ILLEGAL!!
Some Headlines on 03/08/2017 from “conservative” sites (not inclusive):
Conservative Group Club for Growth Opposes Paul Ryan’s Obamacare-Lite
http://www.breitbart.com/big-government/2017/03/07/conservative-group-club-for-growth-opposes-paul-ryans-obamacare-lite/
FreedomWorks Opposes Speaker Ryan’s Obamacare 2.0 Plan
http://www.breitbart.com/big-government/2017/03/07/freedomworks-opposes-speaker-ryans-obamacare-2-0-plan/
Rep. Thomas Massie: GOP Obamacare repeal ‘stinking pile of garbage’ written by the ‘insurance lobby,’ and it ‘will fail’
http://www.washingtonexaminer.com/rep.-thomas-massie-gop-obamacare-repeal-stinking-pile-of-garbage-written-by-the-insurance-lobby-and-it-will-fail/article/2616708
GOP rep: Voters want ‘clean’ ObamaCare repeal
http://thehill.com/policy/healthcare/health-reform-implementation/322898-gop-rep-voters-want-clean-obamacare-repeal
Conservatives to Use ‘Enormous Power’ to Fight Obamacare Replacement Bill
http://dailysignal.com/2017/03/07/conservative-lawmakers-to-use-their-enormous-power-to-fight-obamacare-replacement-bill/
Trump Loyalist Eric Bolling TRASHES Trump-Supported ‘Obamacare 2.0!’
http://politistick.com/eric-bolling-trashes-obamacare-2-0-video/
Exclusive — New Web Ad Targets Paul Ryan’s Obamacare 2.0, Questions If Republicans Will Keep Promise to Repeal
http://www.breitbart.com/big-government/2017/03/08/exclusive-new-web-ad-targets-paul-ryans-obamacare-2-0-questions-republicans-will-keep-promise-repeal/
Exclusive — House Freedom Caucus Not Budging, Official Position Is for Full Repeal Alternative to Paul Ryan’s Obamacare 2.0
http://www.breitbart.com/big-government/2017/03/08/exclusive-house-freedom-caucus-not-budging-official-position-paul-ryans-obamacare-2-0/
Mike Lee Gives Scathing Statement on Obamacare Replacement Bill
http://politistick.com/mike-lee-gives-scathing-statement-on-obamacare-replacement-bill/
The House GOP Leadership’s Health Care Bill Is ObamaCare-Lite — Or Worse
https://www.cato.org/blog/house-gop-leaderships-health-care-bill-obamacare-lite-or-worse
Obamacare 2.0 Guts Enforcement, Gives Illegal Aliens Health Care Through Identity Fraud
http://www.breitbart.com/big-government/2017/03/07/obamacare-2-0-guts-enforcement-gives-illegal-aliens-healthcare-through-identity-fraud/
“It’s A Train Wreck”: Conservative Groups Revolt Against GOP Healthcare Plan
http://www.zerohedge.com/news/2017-03-07/its-train-wreck-conservative-groups-slam-gop-healthcare-plan
Conservatives: Paul Ryan’s Healthcare Plan Replaces Obamacare with Obamacare-Lite
http://www.breitbart.com/big-government/2017/03/07/conservatives-paul-ryans-healthcare-plan-replaces-obamacare-with-obamacare-lite/
Conservative groups blast GOP healthcare plan
http://thehill.com/policy/healthcare/322717-conservative-groups-blast-gop-healthcare-plan
Freedom Partners, Americans for Prosperity Urge Republican Leaders to Fully Repeal Obamacare, Reject House Bill
https://freedompartners.org/latest-news/freedom-partners-americans-prosperity-urge-republican-leaders-fully-repeal-obamacare-reject-house-bill/
RINOcare Will Continue to Drive Up Costs With Subsidies, Penalties, and Mandates
https://www.forbes.com/sites/theapothecary/2017/03/07/house-gops-obamacare-replacement-will-make-coverage-unaffordable-for-millions-otherwise-its-great/#7861df1a37fd
Obamacare 2.0 is a gift to illegals. Oh, and GOP? You LIE.
https://www.conservativereview.com/commentary/2017/03/obamacare-2-point-0-is-a-gift-to-illegals-oh-and-gop-you-lie
Conservative groups blast GOP healthcare plan
http://thehill.com/policy/healthcare/322717-conservative-groups-blast-gop-healthcare-plan
RINOcare is NOT Repealing Obamacare; And the GOP Owns It
https://www.conservativereview.com/commentary/2017/03/rino-care-a-more-insolvent-version-of-obamacare-except-this-time-gop-owns-it
Rand Paul: New Healthcare Plan Will Not Pass
https://townhall.com/tipsheet/justinholcomb/2017/03/07/rand-paul-new-healthcare-plan-will-not-pass-n2295161
5 Serious Problems With RINOcare
http://www.dailywire.com/news/14161/ryancare-5-serious-problems-republican-replacement-ben-shapiro
Trump’s Big-Government Fixes are Giving Conservatives Indigestion
http://www.washingtonexaminer.com/trumps-big-government-fixes-are-giving-conservatives-indigestion/article/2616273
Dana Loesch: ‘We Didn’t Protest Obamacare for 8 Years to Get Obamacare 2.0 From Congressional Republicans’
http://twitchy.com/brettt-3136/2017/03/06/midterms-come-fast-gop-dana-loesch-slams-house-republican-rollout-of-obamacare-2-0/
Rand Paul: House GOP Healthcare Plan Will Not Pass Because it’s Obamacare-Lite
http://www.washingtonexaminer.com/rand-paul-house-gop-healthcare-plan-will-not-pass/article/2616645
Leading Conservatives TRASH Obamacare Replacement as RINOcare, Obamacare-Lite, Obamacare 2.0
http://politistick.com/leading-conservatives-grade-obamacare-replacement-big-fat-f/
Freedom Caucus Slams ObamaCare Replacement, Promises ‘Clean Repeal’
http://insider.foxnews.com/2017/03/07/obamacare-critics-freedom-caucus-slam-replacement-will-introduce-clean-repeal-bill
TURBULENT FUTURE? Conservatives escalate fight against ObamaCare repeal bill, vow to create their own
http://www.foxnews.com/politics/2017/03/07/conservatives-push-back-on-obamacare-repeal-bill-vow-to-introduce-their-own.html
Conservatives Dub Obamacare Replacement Obamacare 2.0, Obamacare-Lite
http://www.washingtonexaminer.com/some-conservatives-pan-obamacare-replacement/article/2616629
RINO House Leadership Announces Obamacare 2.0
http://ijr.com/2017/03/818591-gop-reveals-its-highly-anticipated-plan-to-replace-obamacare-here-are-the-highlights/
House Republicans Unveil RINOCare Bill & It’s DOA
http://thewashingtonstandard.com/house-republicans-unveil-rinocare-bill-doa/
House Republicans’ Obamacare Plan Lacks Party Buy-In
http://www.realclearpolitics.com/articles/2017/03/07/house_republicans_obamacare_plan_lacks_party_buy-in_133272.html
As GOP Introduces Obamacare Replacement, Conservatives Balk: ‘We’ve Got to Do Better’
http://www.cnsnews.com/news/article/susan-jones/gop-introduces-obamacare-replacement-conservatives-balk-weve-got-do-better
Some Conservatives Balk at Obamacare Replacement
http://www.realclearpolitics.com/articles/2017/03/07/house_republicans_obamacare_plan_lacks_party_buy-in_133272.html
This has been explained by Spicer again and again.
Those who have employer HC enjoy the coverage tax free. That is not true for anyone buying individually.
well, i’m still reading it. but i guess they’re trying to keep people getting the gov’t allowances they’re giving away by just signing up when they need to.
Seems to me that a premium penalty actually makes a given individual more likely to remain uninsured and only biting the bullet on the 30% when forced to do so by illness or injury.
THE STICK!!!!
Agreed. And it is not fair for someone who doesn’t have insurance to get sick and suddenly want coverage without a penalty.
Like not carrying car insurance and then getting in a accident, quickly getting insurance and demanding that the insurance company retroactively cover the accident even though the person wasn’t covered when the accident happened.
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