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Repeal and Replace Obamacare

Kevin McCarthy (R- Bakersfield) has  multiple doubts.   The Republican-led Congress my not be ready to repeal Obamacare by inauguration day. However, some members of President-elect Donald Trump’s transition team differ. They  have said that this could happen in a special session.

This could would be recipe for disaster if the “replace” part gets delayed.

Experts warned Congress of financial risks. These financial risks became key when Congress repealed parts of Obamacare. No replacement could disrupt the individual plan health insurance market.

Americans could lose healthcare insurance:

The American Academy of Actuaries said that insurers could exit that market. Thus millions of Americans could lose their health insurance.

Trump has proposed however expanding tax-free health savings accounts. He further suggested selling insurance across state lines. Mr. Trump also envisaged block-granting Medicard

Tax credits would be given to people which they can afford. Repealing Obamacare and the subsidies that come with it, would therefore increase costs for consumers who buy insurance individually.

A recent study by the Commonwealth Fund and Rand Corp finds that without repeal, an individual ACA policy would cost you $3,200 a year on average in 2018. However, repeal would increase the cost to $4,700.

Republicans risk provoking up to 30 million people while the replacement effort is ongoing. These individuals are covered by the law or buy policies with prices affected by its insurance marketplace.

FREOPP:

A plan that the Trump administration could look at is the one put out by The Foundation for Research for Equal Opportunity (FREOPP). This was devised by Avik Roy, a healthcare advisor to Mitt Romney’s 2012 presidential campaign.

The FREOPP plan creates a universal tax credit. This is deposited into a health savings account. It enables anyone to buy healthcare.   People currently enrolled in Obamacare’s Medicaid expansion would be included.

The FREOPP plan gets rid of most of the most gruelling regulations holding back innovation.

It repeals Obamacare’s “Cadillac Tax” on healthcare plans and replaces the employer-coverage tax break with a capped standard deduction.  More people are covered than on  Obamacare. It looks very close to a perfect Obamacare replacement.

Repealing Obamacare

President-elect Donald Trump has repeatedly vowed to repeal and replace Obamacare.

These statements therefore suggest that big changes are in store for the health insurance marketplace and Americans who rely on it.

How soon would this new legislation come into effect? What would it look like?

Health policy analysts say that an outright repeal of Obamacare is unlikely without bipartisan agreement.

It is possible for Congress to defund Obama’s Health care plan by using budget reconciliation. This is a streamlined process for making tax and spending charges.

Obamacare could be put down by a Senate filibuster with an outright appeal. A filibuster is an obstructive tactic used in the United States Senate to prevent a measure from being brought to a vote.

The most common form of filibuster occurs when a Senator attempts to delay or entirely prevent a vote on a bill.    This is done by extending the debate on the measure. Senators may thus speak for as long as they wish  Furthermore they can choose  any topic. they choose. However, three fifths of the Senators duly chosen and sworn may therefore bring the debate to a halt by invoking cloture.

Cloture is a process in parliamentary procedure aimed at bringing a debate to a quick end.

In 2015 Republican Tom Price of Georgia sponsored a measure to cut off funding for Obamacare.

Price’s reconciliation bill would have stopped premium tax credits and cost-sharing subsidies. These elements were intended to make health insurance more affordable for low and middle income Americans. This bill would also have ended individual tax penalties for people who failed to maintain health insurance coverage.

Medicaid is currently operating in 32 states. This bill would furthermore ensure that federal funding for Medicaid expansions would be cut off.

The principle reforms by the Trump administration includes health savings accounts (HSAs). Furthermore, greater state discretion in regulating health insurance.

Paul Ryan, the House Speaker, compiled some key elements in his proposal called “A Better Way”. Ryan has suggested market-based solutions. Examples are tax credits adjusted for age. This will thus assist people in buying health insurance in the individual market.

Although details of Trump’s healthcare plan remain sketchy, the major GOP proposals have a few features in common:-

1. Using health savings accounts

2. Creating high-risk insurance pools

3. Selling health insurance across state lines