Sen. John Thune, the third-highest ranking member of the Senate, is working on a proposal to partially means test the tax credits in the House Obamacare repeal and replacement bill.
In a sit-down with Axios, Thune said he wants to avoid "creating a new middle class entitlement," which the current House bill could do by spreading the federal assistance too far up the income scale. Instead, his proposal would give more assistance to low-income people and cap the assistance at a lower income level than it currently is. "It would be a more progressive-type benefit," he said.
Why it matters: Some conservative health care analysts believe the GOP would cover more people if the tax credits did more to help low-income people, since every dollar of financial aid matters more to them. Read on for the details.