OBAMACARE REPLACEMENT PLAN INTRODUCED IN CONGRESS

republished below in full unedited for informational, educational, and research purposes:

Senator Rand Paul (R-Ky.) and Representative Mark Sanford (R-S.C.) introduced
their ObamaCare Replacement Act (ORA) on Wednesday. It would
simultaneously repeal nearly all of ObamaCare’s most onerous demands and
mandates while opening up the health-insurance market to individuals to
purchase, or not to purchase, coverage. The bill, S.222, might more
appropriately be named the “Health Insurance Freedom to Purchase Act,”
putting the decision to buy, or not to buy, coverage back in the hands
of individual citizens and taking it out of the hands of the federal
government.

Senator Paul said, “This is a big, big day for conservative
Republicans. We owe this to the conservatives around the country who
elected us to repeal, to completely repeal, ObamaCare. But I think if
you’re going to repeal something, you should replace it.”

Whether that is so is open to debate. Some would say it would be
better just to repeal ObamaCare and let the free market sort things out
afterwards. Nevertheless, the ORA puts the decision to purchase health
insurance coverage back in the hands of the people paying for it,
allowing them the freedom not to purchase coverage if they don’t want
to. The ObamaCare mandate requiring people to either purchase health
insurance or pay a penalty would disappear. It would allow those
citizens choosing to buy health coverage to choose whatever plan they
want. Insurance companies will be allowed to offer coverages across
state lines, and expand their offerings without federal interference or
demands that certain expenses be covered even when unwarranted or
unnecessary.

Rather than punishing those who decided under ObamaCare not to buy
coverage with IRS penalties, ORA offers incentives instead. Individuals
may set up their own Health Savings Accounts (HSAs) to pay for future
medical and health expenses. Any amounts may be added to those accounts,
and those funds may be invested without incurring taxes on any
earnings. And a tax credit of up to $5,000 per person putting away funds
into an HSA is allowed. Those without insurance through their employer
but wanting to buy coverage will be able to join voluntary associations
for the sole purpose of buying insurance, taking advantage of better
coverage at lower rates.

Funds invested in HSAs may be used to buy health insurance, pay for
prescriptions and over-the-counter drugs along with dietary supplements,
and pay for physical exercise regimens offered by personal trainers and
workout centers and facilities. And, of course, those funds may be used
to cover any deductibles in the coverages they decide to purchase. HSA
funds may also be used by those already covered under the VA, Medicare,
Tricare, IHS (Indian Health Service), or healthcare sharing ministries.

In other words, HSAs under the new law will be tax-deferred savings
accounts, with tax credits added in as a bonus to encourage people to
set them up.

Included in the ORA are provisions allowing states more freedom to
modify Medicaid coverages without federal government interference. And
it provides a two-year “window” open-enrollment period under which
individuals with pre-existing conditions can purchase coverage.

The ORA is a “consensus” bill combining the elements of at least four
plans being offered to replace ObamaCare. While there are still some
issues to be ironed out, especially regarding Medicaid and the size of
the tax credit, the bill in final form could arrive on President Trump’s
desk by the end of March.

The ORA is also a political move by the House Freedom Caucus, which
supports it unanimously. The 40-member caucus is using this as a lever
to move ObamaCare’s repeal along more rapidly. That caucus voted on
Monday night to repeal the bill passed by both houses in 2015 undoing
ObamaCare, putting in its place the ORA.

If it becomes law, the ORA will put responsibility for one’s health
care back where it belongs: the taxpayers who are making the decisions
on how they want to spend the money they earn. That freedom, under the
ORA, would include the freedom not to buy health insurance if one
decides not to. That is the paradigm shift toward freedom and away from
government mandates contained in the bill offered by Senator Paul and
Representative Sanford.