Wherefore, honest men and wise men should be sought for diligently, and good men and wise men ye should observe to uphold; (D&C 98:10)

Monday, February 6, 2017

Why the ObamaCare Replacement Act, S. 222 is better than ObamaCare

I posted "Support the ObamaCare Replacement Act, S. 222" on FB. One of my FB friends asked me, why I thought it was better than ObamaCare.

Here was my response:

I believe that allowing a marketplace is the best option for all people. One thing Rand mentions in this video is changing the part of Obamacare that does not allow inexpensive plans . It also does not allow large contributions to HSA accounts.


Here are some changes that did not exist before Obamacare.

1 - Allowing insurance to be sold across state lines will increase competition.
2 - Making it easier to allow individuals to associate and buy insurance as a group. Insurance was connected as an employer benefit to get around salary and wage restrictions the government created around WWII. As we break this association, more individuals will be able to get insurance. Insuring as a group will reduce the risk of insurers.
3 - Allowing much larger contributions to HSAs will allow the selling of plans with much larger deductibles. If you have $5,000 in an HSA, then you can afford a plan with at least a $5,000 deductible. As more people do this, there becomes a market force on the costs of health care providers. Consumers will know the true cost of their care and will be able to shop for what they need.

Some other details from the plan. ("Rand Paul pushes GOP to act on Obamacare by unveiling a replacement plan", CNN, 25 Jan 2017, YouTube)
- "tax credit of up to $5,000 per person to use toward the establishment of a Health Savings Account"

Details from Rand Paul
- Allow individuals to exclude their premiums just like those who get their insurance from their employers
- "Removes the maximum allowable annual contribution, so that individuals may make
unlimited contributions to an HSA."

UPDATE 2017-05-10

Rand does not particularly like the bill passed by the house.
"Rand Paul seems to lean “no” on the health care bill unless these major changes happen", Rare.us, 5 May 2017

A big part of our existing system began around WWII when the government set a price limit on wages. Employers got around it by giving employees health care benefits. I think making it easier to have health savings accounts is a way out of that. It will connect the patient with the actual costs of the health care they are using. ("The History of U.S. Employer-Provided Health Insurance - Post-World War II", zanebenefits.com, 4 Jun 2014)

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