WASHINGTON - Conservative House Republicans, led by Rep. Steve Scalise, R-Jefferson, are ready to unveil their alternative to "ObamaCare," a plan that would provide generous tax breaks to people who purchase health insurance coverage and more government funding for state high-risk pools. The Republican Study Committee, which boosts membership of 172 of the 233 Republican House members, will formally...
WASHINGTON - Conservative House Republicans, led by Rep. Steve Scalise, R-Jefferson, are ready to unveil their alternative to "ObamaCare," a plan that would provide generous tax breaks to people who purchase health insurance coverage and more government funding for state high-risk pools.
The Republican Study Committee, which boosts membership of 172 of the 233 Republican House members, will formally unveil the legislation at a news conference Wednesday afternoon.
"Many people don't have real options now and feel trapped in their jobs for fear of losing their health coverage," said Scalise, the RSC's chairman. "In our bill, we don't only increase competition by allowing people to purchase across states lines, but we allow groups to pool together through associations to purchase health care. So, you can join together with members of your Rotary Club and get group coverage."
Scalise said the RSC proposal "gets rid of the mandates and the government interference" from the Affordable Care Act, while expanding insurance options for all Americans.
The plan would grant individuals who purchase health care a deduction of $7,500 against their income. Families could qualify for a $20,000 tax deduction. The deductions can be claimed regardless of the cost of the insurance.
Among other provisions: Protection for Americans with pre-existing conditions who already have insurance. They'd generally be able to switch their insurance without problem. Another measure authorizes expansion of health savings accounts with tax benefits that Americans can use to pay medical costs which they say is particularly helpful to those on high risk plans.
The GOP plan would authorize $25 billion over the next 10 years to boost state high-risk insurance programs, where rates would be capped at no more than twice the state's average insurance rates.
The RSC measure will provide some political cover for Republicans who have been criticized for moving aggressively to repeal the Affordable Care Act, without offering an alternative.
But the plan is still likely to meet opposition from Democrats because, unlike the subsidies provided under the Affordable Care Act to help low and middle income Americans purchase health coverage, the RSC proposal provides tax breaks to help people buy insurance, regardless of income restrictions. Still, the tax deductions will help the bottom line for low and middle income taxpayers far more than wealthy. A millionaire wouldn't get much help from even a $20,000 deduction.
Scalise said that by tying the plan's tax breaks to the cost of insurance the RSC is encouraging "people to shop around," and choose their coverage more carefully because they get "more money in their pockets" by doing so. It also gives individuals and families access to tax breaks that, previously, went only to businesses that provide health insurance subsidies for workers, according to backers of the RSC plan.
While the Affordable Care Act bars discrimination against people with pre-existing conditions, and makes that palatable to insurance companies by requiring most Americans (including younger, healthier people) to get coverage, the GOP plan appears to rely more on expanded funding to state high-risk pools where insurance costs would be capped at no more than twice the state's average premiums.
So will the increase competition generated from granting companies the ability to sell coverage across states lines and allowing associations and groups to pull together to get coverage for their members, according to Scalise. He said this is a way to expand coverage without the heavy-handed "mandates of the Affordable Care Act.
Scalise said the Republican Study Committee's plan arrives with some clout - given that his group has roughly 40 percent of the House's membership. Among its members are House Majority Leader Eric Cantor and Budget committee and former vice presidential candidate Paul Ryan, R-Wisc.