Fox News reports, “Under the proposal endorsed by the 175-member Republican Study Committee, Americans who purchase coverage through state-run exchanges can claim a $7,500 deduction against their income and payroll taxes, regardless of the cost of the insurance. Families could deduct $20,000.”
Approximately 75 percent of rank-and-file House Republicans are on the study committee, Fox News observes.
The measure was drafted by a small group, led by Rep. Phil Roe (R-Tenn.), a member of the House Doctors Caucus. Roe asserts that the tax deduction would help guarantee that individuals and families purchasing their own health insurance would enjoy “the same buying power” as employers.
The bill expands federal support for state high-risk pools to $25 billion over 10 years. Roe adds that the $25-billion commitment would help ease the burden on families when funding provided under Obama’s plan runs out. Premiums in high-risk pools would be capped under the Republican plan at twice the average cost of insurance sold in the states.
Further, those with preexisting conditions who have insurance coverage would be allowed to shift existing insurance without having to worry about losing it.
The Daily Caller writes:
Under current law, individuals purchasing insurance in the individual market are protected from pre-existing condition exclusions only if they have not had a substantial break in coverage, their previous coverage was through an employer, and they fully exhaust COBRA coverage. This provision would allow individuals to receive those same protections regardless of the source of their prior coverage and without requiring them to exhaust COBRA coverage, which is often very expensive for both employees and employers.
The Republican plan provides expanded access to health savings accounts, increases the maximum allowable contribution to those accounts, and permits employers to offer a larger benefit for those who successfully complete a wellness program.
Click here to read the entire article.
Photo of House Speaker John Boehner (R-Ohio): AP Images