Republicans are criticized, sometimes fairly, for not offering solutions to the problems they complain about. One Republican in Congress who has been offering alternatives to Obamacare since before there was an Obamacare is Georgia Congressman Tom Price. His latest plan was introduced with 46 co-sponsors and is gaining national attention as evidenced by this article in National Review this morning.
The new model of H.R. 2300 differs from the prior model in several key ways. Instead of a combination, in the individual market, of income-based tax credits and tax deductions, it now calls for simple age-based tax credits, which will let people quickly see what they’ll receive, reduce the I.R.S.’s role, and avoid work-disincentives. In addition to making it easier for people to have and use health savings accounts, it now offers a one-time tax credit of $1,000 per person for having or opening an HSA. Instead of an open-ended tax break for employer-based insurance, it now closes that tax loophole while continuing to give those with employer-based insurance their full tax break on insurance that costs up to $20,000 for a family or $8,000 for an individual. In other words, the tax treatment of the typical person’s employer-based plan wouldn’t change one bit (and anyone with, say, a $23,000 plan, would still get the full tax break on the first $20,000).
Price’s alternative, therefore, would deal with both costs and coverage while finally fixing a longstanding inequality in the tax code for millions of middle-class Americans who have to buy health insurance on their own. Since the 1940s, those with employer-based insurance have gotten a generous tax break, while those without employer-based insurance generally have not. Obamacare’s 2,400-plus pages managed to assault Americans’ liberty without correcting this unfairness in the tax code. Price’s 242-page bill achieves what Obama’s could not — at one-tenth the length.
Kudos to Congressman Price for continuing to offer sound policy on this important issue.