The Heritage Foundation's "After Obamacare Repeal" Plan
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After Obamacare Repeal is a healthcare plan released by The Heritage Foundation in October 2013. The plan would primarily provide consumers with tax credits to purchase insurance and encourage the use of health savings accounts. Employer-sponsored insurance would also be amended ending the federal tax deduction for health benefits. The Affordable Care Act, commonly known as Obamacare, would be repealed in its entirety.
Text of plan
The following is summary text from The Heritage Foundation's After Obamacare Repeal plan:
| “ | To allow Americans to reclaim control of their own health care and benefit from competition in a free market for insurance and health care, Congress should repeal the Obamacare statute and enact patient-centered, market-based reforms based on five principles:
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| —The Heritage Foundation[2] | ||
Summary
The Heritage Foundation's After Obamacare Repeal would repeal the Affordable Care Act (ACA) in its entirety. The plan also proposes ending the federal tax deduction for health benefits offered by employers and instead offering all individuals a tax credit to purchase health insurance on their own. The plan would also support offering each American a standard tax deduction for health insurance as an alternative to tax credits.[3] Under the proposal, employers would offer their employees a cash contribution to purchase their own insurance, rather than providing health plans directly.[2]
After Obamacare Repeal would also encourage the use of health savings accounts (HSAs) by removing the restriction on using HSA funds for health insurance premiums and by raising the limit on the amount of money an individual may deposit into the account each year. In place of the prohibition on denying coverage for preexisting conditions, the plan supports either state-operated high-risk pools or state reinsurance programs that would reimburse insurers for the cost of covering individuals with complex or expensive conditions.[2]
With the goal of increasing competition, the proposal would remove federal barriers to selling insurance plans across state lines. Under the plan, small businesses and individuals could pool together for the purpose of purchasing insurance, and religious groups and fraternal organizations could offer insurance plans to their members.[2]
After Obamacare Repeal would also make changes to Medicaid and Medicare. The proposal would encourage states to provide low-income Medicaid beneficiaries with cash assistance to purchase private health plans. Federal Medicaid funds would be distributed to states either through block grants or a per-capita allotment, rather than as a matching percentage of state funds. The Medicare program would be altered by allowing doctors and patients to "[contract] privately for medical services outside of traditional Medicare." The plan also supports providing Medicare enrollees with a subsidy to purchase a health plan of their choice.[2]
News feed
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See also
Footnotes
- ↑ Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
- ↑ 2.0 2.1 2.2 2.3 2.4 The Heritage Foundation, "After Repeal of Obamacare: Moving to Patient-Centered, Market-Based Health Care," October 31, 2013
- ↑ Note: Tax credits lower an individual's amount of tax liability dollar for dollar; for example, an individual with a $100 tax credit would owe $100 less in taxes. Tax deductions lower an individual's amount of taxable income; for example, an individual making $35,000 per year with a $1,000 tax deduction would owe taxes on only $34,000 of his or her annual income.
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