WHERE CAN I READ THE BILL? 


You can read The American Healthcare Act in its entirety at
readthebill.gop (which includes additional information). 

 

WHY DOES OBAMACARE NEED TO BE REPEALED AND REPLACED?


Obamacare is failing, and it’s going to get even worse if we do nothing.   

  • Health care choices are disappearing fast:
    • In 2016, there were about 2,000 counties that had three or more insurers to choose from.
    • In 2017, this number has plummeted because insurers are leaving the market.  With fewer choices and less competition in the marketplace, Americans are hurting. 
      • In 2016, a little over 200 counties had only ONE insurer.
      • In 2017, this number is over 1,000 counties.  That’s 1 in 3 counties – a 454% increase.

Click on image for source. 
  • As choices disappear, health care premiums continue to rise:
    • This year alone, premiums increased by a national average of 25%. 
    • Texas saw an 18% increase in premiums.  The highest increase was in Arizona at 116%.
    • In Collin County, in the past year we have gone from 8 providers on the Obamacare exchange down to three – only two of which are returning. 

Click on image for source. 
  • Fewer and fewer people choose (or can afford) to pay for expensive premiums and instead opt out.  Opting out means these folks pay a yearly penalty (due to the individual mandate), but the penalty is often cheaper than purchasing health care. 
    • Fewer and fewer people participating in a limited insurance market further drives up cost – a cyclical process. 
      • 19.2 million taxpayers either paid the individual mandate penalty tax (6.5 million) or claimed an exemption from the individual mandate (12.7 million) compared to the 10.4 million individuals who paid for plans on Obamacare exchanges through the first half of 2016.

Click on image for source. 

WHY CAN'T WE DO A FULL, COMPLETE REPEAL OF OBAMACARE?

A full and complete repeal would require 60 votes in the Senate.  There are 52 Republicans in the Senate, and in order to gain the support of at least 8 Democrats, it is highly unlikely a Democrat-supported repeal would be “clean” or “conservative.” 

Some folks have asked why we don’t do a “show” vote for a clean repeal even though we know it would fail in the Senate.  My answer is this: we have already done a “show” vote in order to get Democrats on the record when we didn’t have a Republican in the White House (H.R. 3762, Restoring Americans' Healthcare Freedom Reconciliation Act of 2015).  Now is the time for action.

While we cannot do a full and complete repeal due to budget rules, what we CAN do is repeal a good part of Obamacare with a bill that only requires 51 votes in the Senate for passage (“reconciliation” bill).  It’s important to remember that the buck doesn’t stop here.  Let me be the first to say The American Health Care Act is not perfect, but you should know that I – and Congress – plan to pass additional legislation that we couldn’t include in the reconciliation bill.  A great example would be my Small Business Health Fairness Act (H.R. 1101) that passed the House on March 22, 2017.


In an ideal world, Obamacare wouldn’t have drastically altered the individual market and created what is essentially a new entitlement program.  But we do not live in an ideal world, and a repeal without some form of a replacement would mean 18 million Americans becoming uninsured in the first year and premiums continuing to increase (according to the non-partisan Congressional Budget Office).  Democrats are responsible for the current mess of America’s health care system – but Republicans are ready to offer solutions instead of leaving people high and dry. 

 

WHAT IS THE PLAN TO REPEAL AND REPLACE? 

There are three steps to repealing and replacing Obamacare.

STEP 1: Pass the reconciliation bill, The American Health Care Act.


This bill:

  • Repeals the individual mandate;
  • Repeals the employer mandate;
  • Gets rid of the $1 trillion in tax increases that have hurt American families and businessess from all walks of life;
  • Protects folks with pre-existing conditions;
  • Allows states to waive out of some Obamacare insurance requirements that have driven up premiums;
  • Allows young adults aged 26 and younger to stay on their parents’ health care plans; and
  • Provides a monthly refundable, “advance-able” tax credit for folks who participate in the individual marketplace (not folks who receive health insurance through their employer or participate in Medicare or some other federal health program).

STEP 2:  Health and Human Services Secretary Tom Price will take the necessary regulatory actions to help lower costs and stabilize the market.

STEP 3:  Congress will follow up on the reconciliation with further solutions.

Follow-up health care reforms include:

  • Allowing folks to purchase health care across state lines.
  • Allowing small businesses to join together through association health plans (AHPs). 
    • The House passed my bill to do this, Small Business Health Fairness Act (H.R. 1101), on March 22nd, 2017.  You can read my op-ed in the Wall Street Journal on it HERE

 

HOW WOULD THIS PLAN LOWER COSTS AND PROVIDE GREATER ACCESS? 

The American Health Care Act would stably transition toward a health care market that provides lower costs and greater access to more health care choices.  Rest assured that as this transition takes place, Americans will continue to have access to their current health care option.  In fact, this plan would work to immediately provide more flexibility and choice for people purchasing insurance in the individual marketplace.  For example, folks will be able to use their existing subsidy to purchase insurance in the marketplace.



Providing a monthly refundable, “advance-able” tax credit for folks in the individual marketplace (not folks who receive health insurance through their employer or participate in Medicare or some other federal health program) would also lower costs and provide greater access to health care.  These credits would begin in 2020 for any person who would be purchasing health insurance through the individual or small group market.


These tax credits would be based on two things: age and income.  Credits will be based on your age and the ages of people in your family.  The credit incrementally phases out for individuals with income over $75,000 and for families with income over $150,000.     



How much would your tax credit be?

Age

Refundable (and “Advance-able”) Tax Credit

29 and younger

$2,000

30-39

$2,500

40-49

$3,000

50-59

$3,500

Over 60

$4,000

  • The credits are additive for a family up to $14,000.