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 These financial risks became key when Congress repealed parts of Obamacare.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.
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.