The Obamacare Replacement Act
Sen. Rand Paul, M.D.
Since the passage of Obamacare, Americans have seen their premiums skyrocket, coverage they liked terminated, and dwindling choices of in-network healthcare providers. Many individuals who gained coverage through Obamacare are still, for all practical purposes, without insurance because the deductibles are beyond the reach of low income workers. It is essential that Obamacare be replaced with a plan that achieves what Obamacare failed to do – insure the most people possible at the lowest price.
Legalize Inexpensive Insurance Plans:
- Obamacare not only told individuals that they must purchase insurance, but defined specifically what that insurance must be. The first order of business should be to ensure that Americans can purchase the health insurance coverage that fits their needs.
- By imposing a variety of requirements on what plans can cover and how much they pay out in claims, Obamacare significantly increased premiums. By eliminating Obamacare’s essential health benefits requirement, and other restrictive coverage and plan requirements, low-cost insurance options will again be available to American consumers.
Help People Save To Buy Health Insurance:
- Authorize a tax credit (up to $5,000 per taxpayer) for individuals and families that contribute to HSAs to further incentivize health savings.
- Remove the maximum allowable annual contribution limit to HSAs, so that individuals may make unlimited contributions to an HSA.
- Currently, HSA funds may not be used to purchase insurance or cover the cost of premiums. Allowing the use of HSA funds for insurance premiums will help make health coverage more affordable for American families.
- Allowing HSA funds to be used for a broader range of health-related expenses give Americans the freedom to choose the type of health care they wish to receive. Eligible expenses are expanded to include prescription and OTC drugs, dietary supplements, weight loss programs and physical exercise expenses, and direct primary care and concierge medicine services, among others.
Fair Tax Treatment of Health Insurance
- Equalize the tax treatment of the purchase of health insurance for individuals and employers, by allowing individuals to deduct the cost of their health insurance from their income and payroll taxes, they will be empowered to purchase insurance independent of employment.
Help Individuals Join Together to Purchase Insurance:
- Expand Association Health Plans (AHPs) allow small business owners and individuals to band together across state lines through their membership in a trade or professional association to purchase health coverage for their families and employees at a lower cost.
- In addition, we should allow individuals to pool together through any organization to purchase insurance.
- These new pooling mechanisms increase the buying power of individuals and small businesses to decrease costs, increase administrative efficiencies, and protect individuals with pre-existing conditions by giving them access to the group market.
Allow the Purchase of Insurance Across State Lines
- Increase access to health coverage by creating an interstate market for health insurance that allows insurers licensed to sell policies in one state to offer them to residents of any other state.
State Medicaid Flexibility
- Provides states new flexibilities for Medicaid waivers for innovative state plan designs.