Republicans unveil new ObamaCare replacement plan

By Nick Kalman
Published February 05, 2015 FoxNews.com



NOW PLAYINGHouse bill to repeal ObamaCare calls for replacement
Congressional Republicans are unveiling what they say is a new plan to repeal and replace ObamaCare, but the ‘blueprint,’ as they call it, looks an awful lot like what’s been floated before.

The Patient Choice, Affordability, Responsibility and Empowerment – or CARE – Act was crafted by Sen. Richard Burr, R-N.C., Senate Finance Committee Chairman Orrin Hatch, R-Utah, and House Energy and Commerce Chairman Fred Upton, R-Mich.

The first bicameral proposal of the 114th Congress calls for the outright repeal of President Obama’s signature health care law, and with that, the individual mandate to buy insurance or pay a fine.

It provides for targeted tax credits to individuals and families up to 300 percent above the poverty line to encourage people to buy plans in the market place.

It also allows insurers to sell plans across state lines and caps the amount of monetary damages that can be awarded in medical malpractice litigation.

Like the Affordable Care Act, dependents are able to stay on their parents’ healthcare plans until they’re 26, and no one can be denied coverage for pre-existing conditions - although this plan calls for a specific ‘continuous coverage’ protection where individuals moving from one plan to another cannot be denied.

Gone, however, are age-rating ratios banning insurance companies from charging older Americans more than three times what they charge younger individuals. The new federal baseline would be five-to-one, essentially lowering costs for younger, lower risk consumers.

To pay for it, Burr, Hatch and Upton propose taxing the value of health insurance plans above $30,000 a year as regular income.

If these proposals sound familiar it’s because most of them are. Many are based on an outline pitched last year by Burr, Hatch, and former Senator Tom Coburn, R-Okla.

“One of the reasons that you don't see massive changes is we thought we had a decent product last year based on feedback as we've talked with governors, with industry,” an aide familiar with the plan said.

“A lot of industry frankly thinks this is a very durable sustainable, credible alternative from a market perspective, and they think it's operationally viable.”

Even if it’s viable don’t expect a vote - in either chamber - anytime soon. Aides are very quick to point out that this should not be hailed as the “GOP Plan.”

“It’s just one plan,” as one adviser put it, and more input from governors and legislators will be needed before anything moves forward. Even hearings haven’t yet been discussed.

Same old song and dance we've been seeing for years, critics say.
Still pressure for viable alternatives is increasing.

There currently is a case about to come before the Supreme Court challenging ObamaCare’s subsidies for private insurance for people who don’t have access to it through their jobs. If that provision is struck down, millions of consumers could drop coverage.

“As soon as we get feedback we are going to keep updating our proposal because now there is a different sense of urgency being in the majority to try to put something together, especially as we are headed to 2017," one Republican aide said. “Not to mention what the Supreme Court may decide on June 30th.”

A larger bill will almost certainly wait until there is a new occupant in the White House.

“Let's all be realistic, the president, who the law is named after, he's not repealing his bill. So what we are doing is putting a very credible idea out there because what our bosses were sick and tired of hearing is the Republicans have no ideas," one aide said.

“Will this whole thing happen before 2017, I find that hard to believe, but we're going to prepare for 2017.”

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