Since the Affordable Care Act was signed into law in March 2010 without any Republican support, its no secret that the GOP has consistently sought to repeal the landmark legislation or propose an alternative solution.
What may not be as widely known is that Sens. Richard Burr (R-N.C.), Tom Coburn (R-Okla.) and Orrin Hatch (R-Utah) recently proposed the ACAs most detailed repeal-and-replace plan, which would eliminate public exchanges and mandated benefits, just to name a few.
The Patient Choice, Affordability, Responsibility and Empowerment Act, CARE for short, also has a Senate version introduced by Senator John McCain. Previous attempts to accomplish the same were made by U.S. Reps Phil Roe (R-Tenn.) and Tom Price (R-Ga.), whos also a doctor.
A noteworthy component that is bound to capture the attention of employers is a cap on employer-provided health insurance that working Americans could exclude from their taxable income, which would be 65% of the average market price for high-end coverage. Premiums exceeding that amount would be paid with post-tax dollars.
Unlike the ACA, the Republican replacement plan would lower the bar on allowable tax credits to purchase insurance coverage to less than 300% of the federal poverty line rather than up to 400%. This would translate into about $36,000 for individuals and $71,000 for a family of four.
An estimated $1.1 trillion to $1.2 trillion in tax relief would be expected over the bills 10-year so-called scoring window from a combination of repealing the ACA, expanding health savings accounts and using more modest tax credits.
In a recent blog published by The Washington Post, health policy journalist Sarah Kliff noted that the GOP replacement plan is built on a three-legged stool approach to health reform that includes expanding access to health insurance, encouraging people to purchase coverage and making plans affordable.
She detailed some of the key differences relative to the ACA that are largely tied to taking more personal responsibility for ones actions or inactions, such as allowing for underwriting fees if individuals let their coverage lapse.
