House May Scrap O’Care Repeal Bill Provision Requiring Continuous Coverage

House Speaker Paul Ryan of Wis. speaks at the Council on Foreign Relations in Washington, Thursday, June 9, 2016, to unveil the national security plank of the Republican agenda and discuss recommendations from their ... House Speaker Paul Ryan of Wis. speaks at the Council on Foreign Relations in Washington, Thursday, June 9, 2016, to unveil the national security plank of the Republican agenda and discuss recommendations from their Congressional National Security Task Force. (AP Photo/J. Scott Applewhite) MORE LESS
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House Republican leaders are considering removing a provision from their Obamacare repeal bill that would require insurance companies to impose a surcharge on individuals who let their insurance coverage lapse for more than two months, Axios reported Wednesday morning, citing an unnamed senior Republican aide.

The provision, known as a continuing coverage requirement, would let insurers charge people an extra 30 percent on their premium for a coverage lapse of more than two months in order to incentivize buying health care plans.

Conservatives like Sen. Rand Paul (R-KY) opposed that provision, arguing that it was too similar to Obamacare’s individual mandate.

The Congressional Budget Office’s analysis of the legislation also found that the surcharge would not be an effective way to encourage people to buy health insurance. The CBO projected that while more people would initially buy insurance under the bill with that provision, the number of people insured would then drop off after 2018.

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