It’s been 15 years since John McCain ran for president with a plan to completely revamp our healthcare system. In the interim, Republicans have attempted a nip here or a tuck there, but nothing really big.
Some employer plans, especially in such low-wage industries as fast food, are almost as bad, which is why millions of employees turn down their employer’s health insurance offer. Employees who do sign up for employer plans often cannot afford to enroll their families. Fortunately, Rep. Pete Sessions and his colleagues have come to the rescue with a
that is a pro-patient, pro-family, pro-free enterprise alternative. It is based on three fundamental values.Under the plan, every family will potentially have the opportunity to obtain health insurance that meets their financial and medical needs. Most readers are aware that Congress effectively abolished the Obamacare individual mandate to buy expensive health insurance regardless of personal needs. But while the mandate to buy is gone, Congress left in place the mandate on the seller side.
The Sessions bill leaves the marketplace exchanges alone and grandfathers anyone who is there and wants to stay. But it allows people to get generous tax relief if they obtain, say, Blue Cross individual insurance that looks just like the plan Blue Cross sells to employers. It also allows people to get tax relief for purchasing
or short-term insurance. These are alternatives that have lower premiums and lower deductibles. They are likely to better meet the medical and financial needs of young, healthy families with moderate incomes and very few assets.For the first time in the 80-year history of the IRS involvement with healthcare, the Sessions bill would treat everyone the same, regardless of where the insurance is purchased.
Another source of unfairness arises when we compare tax relief in the individual insurance market with tax relief for employer-provided plans. Take a family of four earning $45,000 a year. If this family obtains a typical health insurance plan in a marketplace exchange, the tax subsidy is so generous they will pay no premium at all. Yet if the same plan is provided to the same family by an employer, there will be one-fifth as much help from the government.
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