Evaluating the CARE Act: Implications of a Proposal to Repeal and Replace the Affordable Care Act

Publication date: 
May, 2016

Evaluating the CARE Act: Implications of a Proposal to Repeal and Replace the Affordable Care Act

In this report, we analyze the effects of the Patient Choice, Affordability, Responsibility, and Empowerment (CARE) Act, a comprehensive proposal to repeal and replace the ACA offered by Senator Richard Burr (R–N.C.), Senator Orrin Hatch (R–Utah), and Representative Fred Upton (R–Mich.).2 

The CARE Act addresses many of the criticisms of the ACA raised by those wishing to repeal and replace the law, including capping federal Medicaid funding allotments, providing premium-support subsidies for low-income individuals, and relaxing health insurance rating regulations to allow age variation in premiums along the lines of variation in spending.

The CARE Act would also eliminate the individual and employer mandates. To incentivize people to obtain health insurance, the CARE Act imposes a “continuous coverage” provision that would allow insurers to charge higher premiums or deny coverage to individuals who have not remained continuously enrolled.

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