Health insurance companies and other health insurance companies have been lobbying to repeal parts of the Affordable Care Act in recent months.
But the Republican health care plan that would repeal parts would have significant impact on how Americans buy insurance.
Here are five things to know about that.
What does a subsidy look like?
A subsidy is an insurance premium tax that helps pay for insurance coverage, whether it’s health insurance or a prescription drug.
The subsidies are paid directly by the federal government and are often known as premium tax credits or premium tax relief.
How does Obamacare replace subsidies?
Under the Affordable Health Care Act, health insurance premiums are reduced by up to 40 percent for older people, up to 12 percent for people with pre-existing conditions, and up to 25 percent for individuals who qualify for Medicaid.
The federal government also offers a number of other subsidies to help people afford health insurance.
What happens to premium tax credit?
The government will give tax credits to people buying coverage.
These credits are generally paid through a tax code known as the individual mandate.
This mandate requires everyone to buy insurance and pay a fee to the government.
Who gets the tax credits?
Under Obamacare, people who earn less than $45,000 a year will get tax credits that range from $5,500 to $6,500.
In some states, people making up to $94,000 will get subsidies that range up to about $2,500 a year.
How much do premium tax benefits help?
Under ACA, a subsidy can cost up to 70 percent of the premium price.
In order to qualify for a subsidy, a person would have to earn $95,000 in 2017, $95.00 in 2018, and $96,000 or more in 2019.
Under the GOP plan, premiums would be capped at $95 per month.
For people making more than $1 million, premiums will be capped.
For middle-income people, premiums could be capped on the federal level at $1,600 per month, or $1.6 million for people making $85,000 to $106,000.