The Republican House proposal would do the following:
1. Eliminate the penalties on individuals and employers requiring the purchase, offer and acceptance of health coverage beginning in 2017.
2. Reduce the federal Medicaid matching rate for the new eligibles to the state’s traditional match beginning in 2020; in California this would reduce the match from 90/10 to 50/50 for new medically indigent adult eligibles from that point forward.
3. Cap the growth in federal Medicaid matching payments to the growth in the medical CPI beginning in 2020
4. Repeal the income and cost adjusted refundable tax credits for individual coverage and replace them with flat, age adjusted refundable tax credits beginning in 2020. Extend them to out of market plans.
5. Appropriate $80 billion for state grants to stabilize the individual market beginning in 2018
6. Replace the 3/1 age rate band with a 5/1 age rate band in 2018
7. Eliminate the 60% actuarial value floor for coverage sold in the individual and small employer markets beginning in 2020
8. Require a 30% premium surcharge on individual coverage if an individual is uninsured for more than 63 days a year
9. Repeal the surcharges on the Medicare payroll tax for high income individuals in 2018 – savings of $275 billion
10. Repeal the annual tax on health insurers in 2018 – savings of $145 billion
11. Delay the Cadillac benefits excise tax until 2026 – savings of $48 billion.