Earlier last week, Congress finally unveiled their propositions for the replacement of the Affordable Care Act, otherwise known as Obamacare, which was originally set in place by former President Barack Obama.

There are a few key facts to know before getting down to finding out what is proposed to replace the health care act currently in place.

House Republicans and GOP supporters wish to use a system of tax credits in order to allow citizens to “choose their doctors and plan of coverage” and provide health care for all Americans. Jonathan Gruber, an MIT economist, and many others have labeled the new bill as “Obamacare Lite” with its continued heavy demand on insurance companies although the bill itself is written to completely repeal and replace the Affordable Care Act as we know it right now.

As of right now, House legislators have proposed numerous changes that will heavily impact the way we approach healthcare in the upcoming years. Although there is still opposition with one or more of the mandates proposed with the new bill, Congress has labeled it as a “work in progress,” and House Speaker Paul Ryan has said that with this proposal, “the nightmare of Obamacare [will] end.”

Within the House Republic Bill, here is what is now proposed to replace the current healthcare act in place:

  1. Elimination of the Individual Mandate of Obamacare, which required all peoples who could afford health insurance to purchase it in order to make it more affordable for those who are older, sick, or under the poverty line. This could make health persons less likely to purchase health insurance, thereby driving up the costs of coverage for those who need it.
  2. Elimination of the Employer Mandate, which required companies to provide affordable health insurance coverage to their employees.
  3. Coverage for people with pre-existing conditions will still be provided while also preventing companies from charging more based on an individual’s health history.
  4. Dependents up to the age of 26 will be allowed to stay under their parents’ health plans.
  5. Individuals can deposit more money, with the aid of spouse or family, into previously formed tax free health savings accounts.
  6. Tax credit/subsidies to offset the cost of premiums and deductibles is now distributed according to age and income: tax credits would be available in full to individuals earning less than $75,000 and households earning less than $150,000, but they would be capped for higher earners. The subsidy would be $2,000 for a person under 30 and double that for people over 60.
    1. Insurers will also have the option to charge older customers up to five times more than younger customers and state governments will have the option to set a ratio as they see fit.
  7. Income tax credits would be replaced with a flat tax rate in order to make health insurance more affordable. In other words, rather than tax credits being provided based upon income level, a steady amount would be provided based upon an individual’s age and income.
  8. Insurers will also have the option to charge older customers up to five times more than younger customers and state governments will have the option to set a ratio as they see fit.
  9. Medicaid coverage will be increased and will cover people under the eligibility cutoff of 138% of the poverty level.
    1. Federal funding for eligible people below the Medicaid eligibility cutoff of the poverty level, but left the program, would be reduced.
  10. Organizations such as Planned Parenthood (which promote abortion) will be defunded and will not be able to obtain Medicaid reimbursements or Federal family planning grants.