Republicans have multiple plans to offer basically the same health-care at lower cost.
Supporters of the Obama administration like to create the impression that there is no viable alternative to the Affordable Care Act — i.e., Obamacare. But that is demonstrably not true. Republican senators Richard Burr, Tom Coburn, and Orrin Hatch introduced a plan earlier this year that would cover just as many people with insurance as Obamacare at a fraction of the cost.
Now we have confirmation, in the form of a new cost estimate, that a similarly constructed but slightly different proposal would also cost less, while covering nearly the same number of people.
The plan, developed and promoted by the 2017 Project — a group dedicated to developing a conservative reform agenda — shares several key features with Burr-Coburn-Hatch:
It repeals the ACA.
It leaves in place the employer-sponsored system of coverage through which the vast majority of working Americans and their families get insurance today.
It would provide new “continuous coverage” protection for people who stay enrolled in health insurance. They could move from employer coverage to the individual market, and vice versa, without their health status factoring into the premiums they owe. Their preexisting medical conditions would also have to be covered by insurance plans, and they couldn’t be denied coverage by an insurer based on their health status.
It provides new federal funding for high-risk pools, aimed at ensuring affordable options for persons with expensive conditions and minimizing the premium effects of more high-cost patients entering the individual insurance market.
It provides new, age-adjusted tax credits for persons who do not get their health insurance through an employer. Workers in firms with 50 or fewer employees could opt for the credit in lieu of tax-exempt employer-paid premiums.
It places an upper limit on the tax preference for employer-paid premiums, pegged initially to a premium level exceeded by 25 percent of employer plans.
It allows participants in the Medicaid program to get the tax credits and thus enroll in the same private insurance plans available to others in the individual insurance market.