Get the latest market trends in your inbox

Stay on top of the latest market trends and economic insights with the Axios Markets newsletter. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Denver news in your inbox

Catch up on the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Des Moines news in your inbox

Catch up on the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Minneapolis-St. Paul news in your inbox

Catch up on the most important stories affecting your hometown with Axios Minneapolis-St. Paul

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tampa-St. Petersburg news in your inbox

Catch up on the most important stories affecting your hometown with Axios Tampa-St. Petersburg

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

AP file photo

The House Republican proposal to repeal and replace Obamacare will repeal the Medicaid expansion in its "current form" and replace it with per-capita caps, or limits on funding for each person in the program, according to a document given to members obtained by Axios.

States that expanded Medicaid would continue to receive enhanced federal funding for the expansion population during a transition period. But over time, the federal funding would be decreased to the state's traditional match rate. Obamacare required the federal government to pay for the entirety of the expansion for the first three years, eventually phasing down to 90 percent.

"This ensures continuity of care and coverage for low-income adults, but does not reward states that expanded Medicaid under Obamacare and allows individuals to cycle off the program into other coverage sources naturally," the document says.

States that didn't take the expansion would be eligible to "receive additional temporary resources" for safety net providers to help make things more equal between states, the document says.

While a per capita cap would be the default option for states, they could also choose to receive a block grant. The block grant wouldn't include funding for the expansion population and would assume those individuals find coverage outside of the Medicaid program.

Other pieces of the proposal:

  • Increasing the annual maximum health savings account contribution to equal the maximum out-of-pocket spending levels, which are limited by law.
  • "State innovation grants," which would be given to states to use however they wanted to "help lower the cost of care for some of their must vulnerable patients." Basically, they could be used to help set up high risk pools.
  • A universal, age-based tax credit for people buying coverage on the individual market.

Not included:

  • A cap on the tax break for employer insurance benefits, which is typically one of the main sources of revenue for GOP health plans. Aides and members say this is still likely to end up in the final package.
  • Many important numbers, such as the value of the tax credit or how much the per capita Medicaid payment would increase over time. These are crucial details.

Go deeper

Kendall Baker, author of Sports
23 mins ago - Sports

College basketball is back

Illustration: Sarah Grillo/Axios

A new season of college basketball begins Wednesday, and the goal is clear: March Madness must be played.

Why it matters: On March 12, 2020, the lights went out on college basketball, depriving teams like Baylor (who won our tournament simulation), Dayton, San Diego State and Florida State of perhaps their best chance to win a national championship.

30 mins ago - World

Scoop: Israeli military prepares for possibility Trump will strike Iran

Defense Minister Benny Gantz attends a cabinet meeting. Photo: Abir Sultan/POOL/AFP via Getty

The Israel Defense Forces have in recent weeks been instructed to prepare for the possibility that the U.S. will conduct a military strike against Iran before President Trump leaves office, senior Israeli officials tell me.

Why it matters: The Israeli government instructed the IDF to undertake the preparations not because of any intelligence or assessment that Trump will order such a strike, but because senior Israeli officials anticipate “a very sensitive period” ahead of Biden's inauguration on Jan. 20.

Wall Street bets it all on a vaccine

Illustration: Eniola Odetunde/Axios

It's the time of year when Wall Street shops are rolling out predictions for where they see the stock market headed in the coming year. There's one common theme: Widespread distribution of a vaccine is the reason to be bullish.

Why it matters: Analysts say vaccines will help the economy heal, corporate profits rebound and stock market continue its upward trajectory.