Obamacare Replacement Act

OBAMACARE REPLACEMENT ACT

SEN. RAND PAUL | REP. MARK SANFORD

The Free Market Solution

While there have been a number of promising replacement bills and plans set forth in both chambers, the Obamacare Replacement Act best ensures that free markets are given an opportunity to work because patient-centered, consumer-driven competition is the only way we can lower costs and increase access to America’s healthcare system.

Main Components

Legalize Affordable Insurance Plans: The bill eliminates Obamacare’s essential health benefits requirement and other restrictive coverage and plan requirements that force people to purchase plans covering services they don’t want or need.

Expand Access to and Scope of Health Savings Accounts: The bill provides the most robust pro-HSA reforms of any proposal. By expanding the number of HSA holders and increasing the number of covered health care products, cost-conscious consumer behavior typically exhibited by HSA holders will drive down costs across the market.

Equal Tax Relief for Individual Health Insurance Purchasers: The bill allows Americans purchasing their own health insurance to deduct the cost from their taxable income just as with employer-provided health insurance. This empowers people to purchase insurance independent of employment.

Allow Individuals and Groups to Band Together to Purchase Insurance: The bill expands Association Health Plans (AHPs) to allow small businesses and individuals to band together, even across state lines, through membership in an association to provide health coverage for their families and employees. By utilizing economies of scale and increased leverage, these groups are empowered to negotiate for lower costs and protection of pre-existing conditions.

Remove Barriers to Purchasing Insurance Across State Lines: The bill facilitates creation of an open and competitive interstate market for health insurance by allowing insurers licensed to sell policies in one state to sell in any other state.

Increase State Medicaid Flexibility: The bill provides states waiver authority allowing them to develop innovative Medicaid plan designs to lower costs and increase coverage.

No Tax Credits for Abortions: The bill prohibits the use of its HSA tax credits and deductions for elective abortion services.