NCPA - National Center for Policy Analysis

Obamacare Repeal & Replace 2.0: Where Do We Go from Here?

March 30, 2017

NCPA Senior Fellow Devon Herrick writes for Townhall:

The failed House Republican American Health Care Act (AHCA) was always a work in progress. The three-phased approach to reform health care called for passage of the AHCA to repeal the Affordable Care Act (ACA) taxes and mandates; and slow the growth in Medicaid as (i.e. phase one). Phase two was the selective removal of Obamacare regulations by the Secretary of Health and Human Services. Phase three was to be a forthcoming health care bill to revamp onerous insurance regulations. 

Passage of the AHCA (the Obamacare repeal bill) would have resulted in numerous benefits -- getting rid of the individual and employer mandates, stopping the open-ended exchange subsidies and the huge expansion of Medicaid that will bankrupt America over time, are but a few. 

However, it had its shortfalls.  One misguided provision was the Managers Amendment, which would not allow Americans to use any part of their tax credits to fund Health Savings Accounts (HSAs). Instead of being able to use a portion of their tax credit to pay for doctor visits, prescriptions, and OTC drugs, Americans would only be allowed to use their credits towards insurance. This was a big mistake for a variety of reasons. Purportedly the amendment disallowing tax credit to fund HSAs was designed to appease those who do not want anyone using their tax credit for an abortion. Of course, this same rule would have also prevented Christian health sharing ministry members from using the credit towards their and fellow members' medical care.  

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