Senators Burr, Hatch, and Upton's "Patient CARE Act"
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The Patient Choice, Affordability, Responsibility, and Empowerment (CARE) Act was introduced in the United States Senate Finance Committee by Senators Richard Burr (R-N.C.), Orrin Hatch (R-Utah), and Fred Upton (R-Mich.) in 2015. The plan is similar to Rep. Paul Ryan's (R-Wis.) A Better Way plan. Key differences include auto-enrollment of individuals in default health plans and higher tax credits for those with lower incomes. The Affordable Care Act, commonly known as Obamacare, would be repealed almost in its entirety.
Text of plan
- Read a two-page summary of the plan here.
Summary
Senators Richard Burr (R-N.C.), Orrin Hatch (R-Utah), and Fred Upton's (R-Mich.) Patient Choice, Affordability, Responsibility, and Empowerment (CARE) Act would repeal the Affordable Care Act (ACA) nearly in its entirety. The plan would prohibit lifetime limits on coverage, cap untaxed health benefits, and ban insurers from retroactively canceling policies. These elements were all present in the Affordable Care Act.[1]
The Patient CARE Act also envisions some components similar to those in the ACA:[1]
- a ban on denying coverage for preexisting conditions, although if the individual had not maintained continuous coverage, they could be charged higher premiums;
- allowing dependents to stay on their parent's plan until age 26, although a state could opt-out;
- requiring insurance companies to disclose to enrollees information regarding benefits and coverage; and
- a tax credit for individuals and employees at small businesses to purchase insurance, although the credit would only be available up to 300 percent of the federal poverty level.
The proposal would create a health financing office within the U.S. Treasury Department to administer the tax credit, which would undergo compliance reviews by the Treasury Inspector General. Individuals who are eligible for a tax credit but do not choose a health plan could be automatically enrolled in a default health plan by the state, which they could later change or cancel altogether. The plan encourages the use of consumer-directed health plans, which pair high-deductible health plans with medical payment accounts such as health savings accounts or health reimbursement accounts.[1]
Under the Patient CARE Act, states would be allowed to form high-risk pools with federal funding for individuals with chronic and complex conditions. Small businesses could pool together to purchase health coverage, and states could form interstate compacts for the purpose. The plan would also reduce federal barriers to purchasing coverage across state lines.[1]
The Patient CARE Act would also make changes to Medicaid. Under the proposal, "individuals eligible for Medicaid would also be eligible for and have the choice to use the health tax credit to help purchase health coverage." The plan would cap federal funding for Medicaid, and states would receive per-capita funding based on each enrollee's health status, age, and life circumstances. States would also be given more flexibility in the design of their Medicaid programs.[1]
News feed
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See also
Footnotes
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