Lamar Alexander's three-point Obamacare repeal-and-replace plan
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On January 12, 2017, Senator Lamar Alexander (R-Tenn.) proposed a three-point health plan for repealing and replacing the Affordable Care Act, commonly referred to as Obamacare. The plan advocates for repealing Obamacare only once a replacement plan is in place. With the intent of easing the transition between Obamacare to a new system, the plan would allow individuals to use their tax credits to purchase plans off the exchanges and allowing Obamacare's cost-sharing reduction measures to continue temporarily.[1]
In the longer term, states would be allowed to determine the minimum essential health benefits that plans must cover, expand the use of health savings accounts, and repeal the individual mandate. Children would still be allowed to remain on their parents' health plan until age 26 and the ban on denying coverage for pre-existing conditions would be maintained.
What is the timing of the plan?
According to a press release from Senator Lamar Alexander, the first step would be "to repair temporarily a collapsing health care market." The plan would then make step-by-step changes to the healthcare system; according to the press release, these changes would give more control over healthcare to the states. Then, once the changes have created "concrete, practical alternatives" for consumers, Obamacare would be fully repealed.[1]
Referencing President Donald Trump's and House Speaker Paul Ryan's comments that Obamacare should be repealed and replaced simultaneously, Alexander said,[1]
| “ | To me, 'simultaneously' and 'concurrently' mean Obamacare should be finally repealed only when there are concrete, practical reforms in place that give Americans access to truly affordable health care. The American people deserve health care reform that’s done in the right way, for the right reasons, in the right amount of time. It's not about developing a quick fix. It's about working toward long-term solutions that works for everyone.[2] | ” |
How quickly could a repeal and replace plan be voted on?
In a press conference held on January 11, 2017, President Donald Trump outlined his plan for repealing and replacing the Affordable Care Act. His statements indicated a plan to introduce a replacement bill alongside or soon after a repeal bill after the confirmation of Tom Price as secretary of health and human services:
| “ | We're going to be submitting, as soon as our secretary's approved, almost simultaneously, shortly thereafter, a plan. It'll be repeal and replace. It will be essentially, simultaneously. It will be various segments, you understand, but will most likely be on the same day or the same week.[2] | ” |
| —Donald Trump[3] | ||
House Speaker Paul Ryan indicated a similar goal in a statement on January 10, 2017, saying "It is our goal to bring it all together concurrently."[4]
Text of plan
The following is quoted from Senator Lamar Alexander's website:
| “ | Here are three steps we will take, beginning immediately:
1. The rescue plan—6% of Americans with insurance buy their health insurance in the individual market, including the Obamacare exchanges. This is where much of today's turmoil is: higher premiums, higher co pays and insurers pulling out of markets. While we build a replacement, we want the 11 million Americans who now buy on the exchanges to be able to continue to buy private insurance. This will require Congress and the President to take action before March 1, which is when insurance companies begin to decide whether they will offer insurance in these markets during 2018. In general, the goal is to get as close as possible to allowing any state-approved plan to count as health insurance under Obamacare rules, while we are transitioning to new systems. Among actions that will help are to allow individuals to use their existing Obamacare subsidies to purchase state-approve [sic] insurance outside Obamacare exchanges; adjust Obamacare's special enrollment periods; approve the temporary continuation of cost sharing subsidies for deductibles and copays; allow states more flexibility to determine so-called "essential health benefits," age-rating rules and small group restrictions; expand health savings accounts; eventually provide tax credits to help lower income Americans buy insurance; and repeal the individual mandate when new insurance market rules are in place. When the new administration rewrites the guidance on Obamacare section 1332 state innovations waivers to allow for more state flexibility, states will have the authority to further innovate to build more modern health systems. 2. On employer insurance—61% of all Americans who have insurance coverage get it on the job. We will repair the damage Obamacare has done so employers can offer employees more personalized, patient-centered care. We will repeal Obamacare's employer mandate penalty; allow states to determine the so-called "essential health benefits" and thereby lower costs for small businesses; repeal Obamacare's restrictions on grandfathered health plans, wellness benefits, small group plans, and provide more flexibility for small businesses so they can work together to buy insurance. This will mean more state authority, more choices and lower costs for the 178 million Americans who obtain insurance on the job. 3. Medicaid—22% of all insured Americans are covered by Medicaid. We will give states more flexibility to offer these 62 million citizens more options by making federal Medicaid waivers more flexible.[2] |
” |
| —Lamar Alexander[1] | ||
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See also
Footnotes
- ↑ 1.0 1.1 1.2 1.3 Lamar Alexander, "Alexander Votes to Take First Step Toward Repealing Obamacare, Building Better Health Care Systems," January 12, 2017
- ↑ 2.0 2.1 2.2 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
- ↑ The New York Times, "Donald Trump’s News Conference: Full Transcript and Video," January 11, 2017
- ↑ The New York Times, "Trump Tells Congress to Repeal and Replace Health Care Law 'Very Quickly,'" January 10, 2017
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