For people who don’t qualify for Medicaid, and don’t get insurance through their employer, individual subsidies will be smaller. One analysis by the Kaiser Family Foundation estimated that a 27-year-old earning $20,000 a year in Mobile, Alabama, would receive $4,522 in subsidies under the ACA. But the same individual would only receive $2,000 under the current Republican proposal, leaving that person to make up a $2,522 shortfall.The unemployed could pay more, too. Republicans proposed adding a 30% surcharge in premiums to anyone who loses insurance coverage for more than two months.
The proposal introduced by Republicans would allow insurance companies to charge older adults five times what they charge the young. Analysts call this an “age band”. At the same time, the bill would reduce subsidies to all Americans, distributing them by age to everyone who earns less than $75,000 a year individually or $150,000 for a couple.
It would also roll back the ACA’s expansion of Medicaid by 2020. The ACA paid states to expand Medicaid, with the federal government picking up 90% of the bill. That led to 15 million more Americans gaining insurance, according to the Kaiser Family Foundation. Thirty-two states, including 16 with Republican governors, expanded Medicaid. Starting in 2020, the federal government will no longer pay for new people to join the expansion group.