What does the AHCA mean for millennials? 3 things to know

House Republicans' American Health Care Act would have negative and positive effects for millennials, NPR reports.

Here are three things to know.

1. The ACA replacement proposal restructures Americans' tax credits to purchase insurance coverage. It replaces income-based subsidies under the ACA with refundable, age-based and income-capped tax credits, according to Politico. These credits increase with age, from as low as $2,000 for those under 30 or as high as $4,000 for those over 60.

"For some young people [the tax credit] may be more than what they received under the ACA," Jen Mishory, who leads an organization called Young Invincibles, told NPR. "But for a lot of the low-income young people, they could see reductions in that subsidy."

2. While the AHCA would keep the ACA's Medicaid expansion in effect through Jan. 1, 2020, it would then begin rolling back the program.

Ms. Mishory said the AHCA's Medicaid provision could negatively affect some young, single adults who receive coverage through the program.

3. Additionally, the AHCA would eliminate the ACA's individual mandate as well as the tax penalty adults faced if they lacked coverage. However, to encourage people to buy insurance, the AHCA lets insurers charge a 30 percent penalty for those who let their health plans lapse and try to buy a new policy, according to NPR.

This penalty provision is particularly concerning for millennials, Ms. Mishory told NPR, as "young people are the most likely to see gaps in coverage."

 

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