GOP working on health care draft

washington» A draft Republican bill replacing President Barack Obama’s health care law would end its Medicaid expansion, scrap fines on people not buying insurance and eliminate taxes on the medical industry and higher earners.

Instead, it would create tax credits worth up to $4,000, allow bigger contributions to personal health savings accounts and impose a new levy on health coverage some employees get at work.

The 105-page measure largely tracks talking points that House Speaker Paul Ryan, R-Wis., unveiled last summer and a similar outline that GOP leaders recently gave lawmakers. The document is 2 weeks old, and GOP aides said it is subject to change.

Still, it provides some new details of Republican thinking and reaffirms others, such as blocking federal payments to Planned Parenthood for a year.

It also shows Republicans have begun translating their ideas into legislative language, even as they continue their seven-year struggle to unify their party behind a bill repealing Obama’s 2010 overhaul.

Though just a preliminary document, the package drew quick criticism from Democrats.

“This isn’t a replacement. It’s a recipe for disaster,” said Senate Minority Leader Chuck Schumer, D-N.Y. He said it would “put insurance companies back in charge” while boosting health care costs for millions and kicking millions of others off their plans.

Congressional leaders say they want committees to write legislation reshaping the nation’s health care system in March.

That represents slippage from earlier suggestions by President Donald Trump and GOP leaders of quicker action.

According to the Republican draft, insurers could charge older customers five times more than what they charge younger ones, who are generally healthier and less costly to cover.

That ratio is limited to 3-1 under Obama’s statute.