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GOP Senators Release ACA Repeal and Replace Plan

In January, Sens. Orrin Hatch (R-UT), Richard Burr (R-NC), and Tom Coburn (R-OK) released a proposal titled the Patient Choice, Affordability, Responsibility, and Empowerment (CARE) Act to repeal and replace the Affordable Care Act (ACA) with market-based reforms.

While the plan would repeal the ACA, it would keep some ACA provisions such as the ban on lifetime limits on the dollar amount insurance companies would cover for health care benefits and the requirement that insurers cover adult children up to age 26. The proposal would end the individual mandate and offer tax credits for individuals unable to afford coverage. It would also repeal the Medicaid expansion and institute per-capita caps that provide states a fixed amount of funding per Medicaid enrollee.

The plan would be financed by maintaining the ACA cuts to Medicare and capping employer health insurance exclusions at 65 percent, requiring the remaining 35 percent to be considered taxable income. The proposal is believed to be budget neutral over 10 years.

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