Obamacare replacement could mean higher costs for Fort Pierce couple

March 11--A GOP plan to replace the Affordable Care Act might provide less help for the Boyds of Fort Pierce, but is promising to a small business owner from Martin County.

The bill House Republicans filed Tuesday has provisions the AARP said would raise costs for people in their 50s and 60s, such as Deb and Bill Boyd. Since Bill Boyd lost his job last year, they have been buying coverage through tax credits under the law commonly known as Obamacare.

"I'm not happy about it yet," said Deb Boyd, who said she's only read a couple of articles about the plan.

Toby Overdorf, vice president of engineering and consulting firm EDC Inc. in Port St. Lucie, said he's paying more for health insurance under the Affordable Care Act and is hopeful its replacement will enhance competition among providers that would lower his costs. He said the monthly premium for him, his wife and daughter went from about $850 five years ago to more than $2,000 in 2017. He said he's also paying more to provide insurance to about 21 employees who get coverage through EDC.

"I'm certainly feeling optimistic we will be paying less," Overdorf said.

More:Get the facts on the Republican health care bill

The Boyds and Overdorf, who is the chairman of the Martin County Republican Executive Committee, were featured in a Treasure Coast Newspapers story last month about the impacts of the Affordable Care Act on the Treasure Coast. Here are their thoughts about the GOP's replacement, dubbed American Health Care Act, and how they might fare if it becomes law.

--The American Health Care Act replacement would benefit higher earners and do less for older, lower income people, the nonpartisan Kaiser Family Foundation found. That could be problematic for the Boyds, who rely mostly on their savings and money Deb Boyd earns working 12 to 15 hours a week at a local nonprofit.

--That's because under the Affordable Care Act, people with lower incomes receive more tax credits and subsidies than high earners and no credit is provided for individuals with incomes over 400 percent of poverty. Credits under the replacement plan, in contrast, are flat for incomes up to $75,000 for an individual and $150,000 for a married couple, and so would provide relatively more assistance to people with upper-middle incomes, according to Kaiser.

--Overdorf likes a replacement provision that would increase the annual tax-free contribution into health savings accounts from $6,750 to $13,100 for families. Excess money from a premium tax credit also can be contributed and won't count toward that limit. He said he doesn't have an health savings account but would consider one under these changes. He also likes that the GOP plan would keep an Affordable Care Act provision to allow him to keep his 23-year-old daughter on his plan until she's 26.

--The Boyds, both 57, would continue to get insurance despite having preexisting conditions -- he had open-heart surgery last year and she's been diagnosed with cystic fibrosis. But the AARP has raised concerns the GOP plan will make coverage too expensive for Americans ages 50 to 64 who don't have employer-provided policies. Insurance companies would be allowed to charge them five times more than younger people compared to three times more under the Affordable Care Act.

--Overdorf said he agrees with the replacement's repeal of a mandate that people buy insurance or pay a tax, although he disagrees with how the bill allows insurance companies to impose a 30 percent surcharge on people who drop coverage for 63 days or more. He said not requiring people to have insurance will force companies to provide cheaper and more flexible plans.

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