Summary: This afternoon on CNN’s The Lead with Jake Tapper., Speaker Ryan explained in detail key aspects of the American Health Care Act.
Competition and Choice
“Instead of having a government one-size-fits-all mandate system, which is currently in a death spiral—which is what Obamacare is—repeal that and replace it with more competition, more choice, lowers costs, lowers prices, and gives everybody better access to more affordable coverage. You combine our bill, which has tax credits, risk pools, health savings accounts—that dramatically expands people’s access to affordable health care coverage for those people who do not get health care coverage from their jobs.”
“We think the smarter way to go is to open up choice and competition, let more plans be offered, people buy what they want. And that’s why we’re big believers in state-based risk pools. By having federal financing to help states set up risk pools where you actually cover the catastrophic costs for people who have catastrophic illnesses, people with pre-existing conditions, you directly cover those expenses so that a person with a catastrophic illness doesn’t go poor when they get sick. But also, by covering it directly, you’re taking that cost out of the other pools. You’re dramatically lowering the price of health care for everyone else.”
Fair Tax Treatment of Health Care Coverage
“What we’re proposing: Equalize the tax treatment of health care, so that if you do not have health care from your job, you also get a tax benefit to buy in a functioning, open marketplace where the catastrophic illnesses are not going to have to be borne by your insurance or your pool. . . .
“If you give everybody an advanceable, refundable tax credit to go and buy a basic plan of their choosing in their state, which now has free market health care because we’re going to let the states set up free markets in health care . . . that stabilizes the market. That brings down prices. . . . And that’s before Tom Price, Secretary of HHS, brings forward a lot of reforms that let the states go back and open up market-based health care systems.”
“We think this is a smarter way to go and it gives you more market freedom, it gives you more flexibility, it has more competition so we can have better innovation in health care. The alternative is the status quo, and the status quo is just in the middle of a collapse.”