What Do We Know About the Republican’s Plans to Replace Obamacare?

 

repeal obamacare

At this point, we’re a little more than a month into President Trump’s tenure, but he made it crystal clear on his first day in office that he has plans to change the way Americans get healthcare coverage. So what’s it going to look like?

There are several different plans being bandied about by the Republicans to replace Obamacare, but the one that has garnered the most attention is the one created by Rand Paul, former presidential candidate and senator from Kentucky. Paul’s plan has nine key provisions:

1. Get rid of the so-called “individual mandate” that stipulates that Americans who don’t have healthcare coverage will pay a penalty if they can’t prove they had health insurance for at least 9 months of the previous year.

2. Continue to disallow denying coverage to individuals who have pre-existing conditions.

3. Give individuals the right to write off the cost of their health insurance on their taxes, just like corporations do.

4. Increase the tax credit given for putting money into a Health Savings Account (HSA) to $5000 and remove the current limit ($3400 for individuals and $6750 for families) on deposits entirely.

5. Let physicians write off up to 10% of their yearly gross income to compensate them for bad debts, lessening the sting to doctors if uninsured rates rise.

6. Create Independant Health Pools (IHPs), which would allow similar individuals, i.e. church members, alumni organizations, and civic groups, to pool together for the purposes of buying insurance, giving them more power to negotiate rates and deductibles.

7. Allow insurers to sell policies across state lines, increasing competition and choice for consumers.

8. Ease the restrictions on AHPs (Association Health Plans), which are groups containing owners of small businesses of the same trade or profession to pool their buying power, similar to IHPs mentioned above.

9. Implement something known as “block-granting” to the states with respect to Medicaid funds, which gives all power to the states for disbursing Medicaid funds, reducing federal waste and helping Medicaid dollars go further.

Will it work? I think there are some excellent ideas here, especially removing the contribution limit for HSAs, removing the individual mandate, and creating IHPs. Whatever happens, President Trump has already proved that his presidency will provide interesting times for all Americans, that’s for sure.

  Date posted: Monday, February 27th, 2017
Category: Health Care Reform, Health Insurance, Obamacare



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