Posted on 01/08/2014 10:08:04 AM PST by SeekAndFind
If Republicans are successful at replacing the Affordable Care Act, or "Obamacare," what would they replace it with? Two bills introduced in the U.S. House provide clues to what health care reform might look like under Republican government.
One of the bills was developed the Republican Study Committee, a group of House Republicans that tends to represent the more conservative wing of the Republican Party. That bill, H.R. 3121, American Health Care Reform Act of 2013 (AHCRA), was introduced last September by Rep. Phil Roe (R-Tenn.). The other bill, H.R. 2300, Empowering Patients First Act of 2013 (EPFA), was introduced by Rep. Tom Price last June. Both Price and Roe are former doctors.
The bills have many aspects in common, and Price is a cosponsor of Roe's bill. Both bills begin by repealing the ACA, then replace the current law with alternatives aimed at expanding health coverage and lowering health costs.
The central feature of the EPFA is a refundable tax credit for low income Americans to purchase health insurance and a tax deduction for health insurance for others.
The credit or deduction is for those not already receiving some other form of government provided health care, such as Medicaid, Medicare, or a Veteran's Administration plan.
Those earning up to 200% of the poverty level would get a full credit equal to the average insurance rate and tied to inflation. The credit would then be on a sliding scale up to 300% of the poverty level. Insurance companies can get an advance payment so the credit can be used right away.
Those above 300% of the poverty level and not on some other government health plan would not have to pay taxes on their insurance premiums. The deduction would be capped at an amount equal to the average for employer health plans.
The EPFA provides the tax deduction to the individual, rather than, as in current law, through an employer. This means that all Americans would get the same tax deduction, regardless of whether or not they get their insurance through their employer. Additionally, health plans would stay with the individual. So, health insurance purchased through an employer would stay with an individual even if they left their job or moved to another state.
The bill's efforts to reduce health care costs would mostly come from increased competition in the health insurance marketplace. Companies would be able to sell policies across state lines. Small businesses and other associations would be able to enter insurance pools across state lines. And, states would be provided grants to establish high-risk pools to keep insurance costs lower for everyone else.
The EPFA also seeks to save money by reforming lawsuits in the health care industry and eliminating certain types of waste and fraud in Medicare and Medicaid.
Douglas Holtz-Eakin, a conservative economist and former head of the Congressional Budget Office, estimates that Price's bill would lower federal spending by $479 billion over 10 years.
Like the EPFA, the AHCRA would include tort reform, state grants for high-risk pools, allow insurance to be sold across state lines, and provide support for health insurance premiums through the tax code.
The AHCRA would provide a single deduction, $7,500 for individuals or $20,000 for families, to purchase health insurance. That deduction would be the same for everyone, regardless of how much they spend. So, if a family spends $15,000 on health insurance, they still get a $20,000 deduction. (This is to eliminate an incentive to spend more on health insurance.)
The deduction would also be applied to both the income tax and payroll taxes. This means that lower income workers, who usually do not pay income tax but do pay payroll taxes, would still benefit.
The amount that individuals can contribute to a health savings account would also be increased.
Both bills would prohibit federal funds for abortion coverage, except in cases of rape, incest and the life of the mother.
That would mean eliminating Medicare and Medicaid.
Good luck with that.
Ummmmmm......You plan and work hard and sacrifice so you can pay for your own health care?
Why not let the private sector figure it out.
My solution is pretty simple. Make it voluntary. If you want it you can have it. Period.
Those programs are failures. The Great Society, New Deal, programs are bankrupt failures.
I don’t fall for the red herring argument of “oh yeah, well what are the republicans going to do?”
First, most problems the left tries to solve are invented problems and don’t exist. Second, the left invents problems to further tyranny. Third, leftist solutions are so deplorable they innevitably lead to genocide. History has proven this time after time.
I’m not a fan of making the tax code even more complex, but it sure beats what we’re stuck with currently.
We have to break the link between employment and “health insurance”.
This artifact of WW2 price controls has caused many of the problems we have today.
Job mobility (vital in the terrible economy we have under Obama) is impaired by this link.
RE: We have to break the link between employment and “health insurance”.
That’s EXACTLY what the Republican plan aims to do...
FROM THE ARTICLE:
The EPFA provides the tax deduction to the individual, rather than, as in current law, through an employer. This means that all Americans would get the same tax deduction, regardless of whether or not they get their insurance through their employer. Additionally, health plans would stay with the individual. So, health insurance purchased through an employer would stay with an individual even if they left their job or moved to another state.
Excellent! Thanks for the info.
I just got my annual physical today and my doctor was ranting about all the billionaire Democrats saying millionaire Republicans are the problem.
Uh... how about none?
Who says we have to have one? Only the lefty’s...
NOT!
Our health insurance system was working just fine. Were there exceptions - someone didn't think they got a good response from their insurance company? YES! But those occurrences were not the norm. Insurance companies weren't "constantly refusing to pay for doctors visits/hospital bills"! They didn't refuse coverage to EVERYONE who'd ever had a cold or a nosebleed! I got very good responses from my plan.
I never had to think much about my health plan and that's what you want. Something that just works and you don't have to worry about it. I'm sorry to disappoint liberals, but almost everyone I knew had health ins. and it worked well!
Now, all that is gone. All the plans that were working are now gone. They had to be banished so that those people could get Obama's version of good health coverage. Even if the atrocity that is Obamacare is repealed, I don't think we'll ever be able to get those old plans back.
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