Ted Cruz's "Health Care Choice Act"

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The Health Care Choice Act was introduced in Congress by Senator Ted Cruz (R-Texas) on March 3, 2015. "Every last word of Obamacare must be repealed," Cruz said in a press release. The bill would repeal only Title I of the Affordable Care Act (ACA). In place of the ACA's Title I, the Health Care Choice Act primarily envisions a system of insurers selling healthcare plans across state lines. This element is present in other alternative healthcare proposals as well, such as House Speaker Paul Ryan's (R-Wis.) A Better Way plan. Unlike these other plans, the Health Care Choice Act does not repeal the entire ACA and the plan contains only the provision to allow insurers to sell plans across state lines.

HIGHLIGHTS
  • The Health Care Choice Act would repeal only Title I of the Affordable Care Act (ACA). Titles II through X, containing provisions such as the Medicaid expansion, would remain in effect.
  • Under the bill, insurers would establish a "primary state" from which to sell plans and would be required to adhere to the laws and regulations of that state.
  • Insurers could also offer plans in other states, called "secondary states" in the plan, and—with some exceptions—would not be required to adhere to the laws and regulations of those states.
  • Text of plan

    Summary

    Senator Ted Cruz's (R-Texas) Health Care Choice Act would repeal only Title I of the Affordable Care Act (ACA). Title I contained most of the major reforms to the individual health insurance market, such as the individual mandate, an outline of benefits insurers must provide, and the establishment of health insurance exchanges. Titles II through X, containing provisions such as the Medicaid expansion, would remain in effect.[1]

    In place of the ACA's Title I, the Health Care Choice Act primarily envisions a system of insurers selling healthcare plans across state lines. This element is present in other alternative healthcare proposals as well, such as House Speaker Paul Ryan's (R-Wis.) A Better Way plan. Unlike these other plans, the Health Care Choice Act does not repeal the entire ACA and the plan contains only the provision to allow insurers to sell plans across state lines.[1]

    Under the Health Care Choice Act, insurers would establish a "primary state" from which to sell plans and would be required to adhere to the laws and regulations of that state. Insurers could also offer plans in other states, called "secondary states" in the plan, and—with some exceptions—would not be required to adhere to the laws and regulations of those states. Secondary states may require out-of-state insurers to

    • pay taxes on the plans they sell there,
    • register with the state's insurance commissioner,
    • submit documents regarding financial solvency,
    • comply with lawful court orders and injunctions,
    • comply with state fraud, abuse, and unfair claims laws, and
    • undergo an independent review of coverage options.

    Coverage offered in secondary states must first be offered in the insurer's primary state.[1]

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    See also

    Footnotes