Increase spending caps for the territories.

Permit employers to offer employees rewards of up to 30%, increasing to 50% if appropriate, of the cost of coverage for participating in a wellness program and meeting certain health-related standards. Establish 10-state pilot programs to permit participating states to apply similar rewards for participating in wellness programs in the individual market.

Impose fees on the health insurance sector.

Requires states to expand their Medicaid eligibility rules to cover those up to 133% of the federal poverty level. Over half of those newly insured via ObamaCare will be getting their new insurance coverage through Medicaid.