The Republicans have finally released its long-talked about plan to replace the Affordable Care Act.

  • Republican plan to replace the Affordable Care Act
  • American Healthcare Act undoes controversial individual mandate
  • Faces backlash from Democrats, conservatives
  • READ the American Healthcare Act (.pdf)

The plan, called the American Healthcare Act, attempts to repeal the most controversial parts of the Affordable Care Act while keeping the parts everyone loves.

But the plan has a rocky road to President Trump's desk, as it already faces criticism from Democrats and from House conservatives who see it as Obamacare with a new name.

You may already know that the act keeps the ban on denying coverage for pre-existing conditions. It also allows children to stay on their parents' insurance up to age 26. And it denies federal money for insurance plans that cover abortion. Here are five things you should know about the American Healthcare Act:

1. Ends the individual mandate

The least popular aspect of the Affordable Care Act was the individual mandate, which forced people to get health insurance or pay a penalty in their taxes. The purpose of this was to hopefully spread the cost of U.S. healthcare through more people, and level out increases. But people balked at the notion of being forced to pay for health care. 

2. Health care tax subsidies now by age, not income

The plan keeps the subsidies that were available to help people afford an insurance plan. But the Republicans will now base the plan on age, rather than income and cost of insurance where that person lived. For instance, A 20-year-old who qualifies for a tax credit will get $2,000 a year, while someone over 60 will receive around $4,000 a year.

The plan will, however, start to rollback tax credits at higher-income levels. 

3. Ends Medicaid Expansion

Under the ACA, states were able to opt-in for federal funds to expand their Medicaid coverage. As of 2020, those states who did so will no longer get those extra Medicaid dollars for new people. People already covered under the Medicaid expansion will still have coverage, but states will have to pay for any new people enrolled in the program. 

States that did not accept Medicaid expansion funds may be eligible for $2 billion in funding over five years.

States also would receive a set amount of money from Medicaid every year, which will likely change how many lower-income people states can cover.

In Florida, the changes to Medicaid may make it easier for lawmakers to switch to vouchers. State lawmakers are already working on a bill.

4. High-risk coverage returns for some

The act puts aside about $10 billion a year for 10 years, to create a state stability fund, which states can use for high-risk coverage pools, or spend the money in other ways.

High-risk pools used to exist to allow people with health problems in some states to get coverage at higher premiums. 

5. Insurers have more leeway in what they can charge

While those with pre-existing conditions can't be denied coverage, if their coverage lapses, they can be charged higher premiums under the new bill. Insurers can also charge more to older people than younger people under the new plan. 

According to an analysis by the Kaiser Family Foundation, a non-profit health policy group, the plan adversely affects older people, lower income people and people who live in high-premium areas.

Insurance companies will also be able to bring back less expensive packages that would provide fewer benefits.

Information from The Associated Press, CNN were used in this report.