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    Default Rand Paul Plan to Repeal and Replace Obamacare

    Paul, Trump upend GOP's Obamacare repeal plans

    By BURGESS EVERETT - 01/09/17

    After Rand Paul spent the last week urging the GOP not to repeal Obamacare without having a replacement plan ready, his phone rang on Friday night with a call from a new supporter: Donald Trump.

    “He called after seeing an interview that I had done [talking about] that we should vote on Obamacare replacement at the same time,” Paul said in an interview on Monday. “He said he was in complete agreement with that.”

    With Trump going out of his way to bless the Kentucky senator’s approach, Paul’s week-long campaign to hold a vote on replacing Obamacare alongside a simultaneous repeal measure has seemingly upended the GOP’s long-sought plans for a cathartic and immediate vote to gut the health care law. As news broke that Trump backed Paul's play, several other Senate Republicans were also beginning calls for a new strategy — threatening the trajectory of the party’s rush to repeal the law.

    Paul said he wasn’t trying to slow the process down, but instead said it’s a “matter of speeding up” the replacement efforts. He’s putting together an initial proposal containing the GOP’s best ideas and will ship them this afternoon to Trump’s administration after getting buy-in from the president-elect.

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    A Health-Care Plan the GOP Could Get Behind
    by Michael Tanner - January 11, 2017

    The GOP needs an alternative to Obamacare. Rand Paul’s plan is a good start.
    Paul wants to repeal Obamacare root and branch, of course, but he also wants Republicans to offer a replacement plan on day one. Democrats may block it, but then the political fallout will be on them.

    Paul’s proposal draws liberally from the best ideas in other Republican plans, while avoiding many of the pitfalls that make some of those plans unworkable. He would, for example, dramatically expand health savings accounts (HSAs). HSAs shift control of health-care spending from employers to employees. Paul’s expansion would allow much larger tax-free contributions to these accounts, and would allow them to be used for a wider variety of health-related expenses, including insurance premiums. That would mean that you — not your boss — would be able to choose your insurance plan. Expanded HSAs would also mean increased portability for health insurance. Because you could use your HSA to pay your premium, you wouldn’t be as likely to lose your insurance if you changed or lost your job.

    This would replace many of the subsidies in Obamacare without the dangers of government-designated insurance inherent in some of the tax-credit proposals that some Republicans have backed. (If the government offers a credit for insurance, it has to define what insurance qualifies for the credit.)

    Paul would also greatly expand competition and choice in the health-insurance market. He would expand association health plans and allow individuals to purchase health insurance through non-traditional groups, such as churches and civic associations. In theory, any person who wanted to purchase group insurance would have the opportunity to do so. And he would legalize the purchase of health insurance across state lines, challenging both the insurance cartels and overzealous state regulators, while allowing individuals to shop for the best price and quality they can find.

    Importantly, Paul avoids one of the most significant pitfalls of many Republican plans by not retaining Obamacare’s pre-existing-condition rules. These provisions, which prohibit insurers from denying coverage or charging more to people who are already sick, are among the few popular parts of Obamacare. Yet they are also the reason behind some of the most damaging and unpopular provisions, such as the individual mandate.

    Some Republicans are discussing ways to preserve the pre-existing-condition requirements as long as a person maintains continuous coverage, or creating an open-enrollment period during which the rules apply. But those proposals would still encourage people to game the system, jumping to more comprehensive plans or those with the best specialists after they become sick, knowing that insurers could not refuse them or increase their premiums. If Republicans simultaneously eliminate the mandate, this will only accelerate the adverse-selection death spiral that is already besetting Obamacare.

    Paul would eliminate the pre-existing-condition regulations altogether (after a transition period), while his other reforms would significantly reduce the number of people who genuinely cannot buy health insurance because of a pre-existing condition. For those who still need help, Paul envisions responsibility for covering them being shifted to the states, possibly in conjunction with proposals to block-grant Medicaid.

    This would give states the freedom to experiment with ways to cover people who are unable to buy their own insurance for whatever reason, whether pre-existing conditions or low income. Importantly, it prevents a small number of high-cost cases from distorting the rest of the insurance pool. It wouldn’t try to insure the uninsurable, but would provide their health care more directly. After all, it is health care that counts, not health insurance.
    Last edited by Brian4Liberty; 01-11-2017 at 09:35 PM.

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