The became established in an attempt to make coveragemore affordable in America, as well as readily available toconsumers, including individuals who had been denied coverage becauseof their health conditions or those who had been charged more due totheir condition (Emanuel, 2014). The ACA also helped in creating atemporary high-risk pool to cover individuals who were unable toobtain coverage emanating from their preexisting conditions (Hall,2014). The national pool that came to be recognized as thePre-existing Condition Insurance Plan (PCIP), became established soas to serve as bridge coverage until the 2014 insurance reforms aswell as expansions were created. The regulations of ACA have beenconsidered inappropriate and an alternative has been proposed, whichcan help in attending to the problems that the Obamacare has broughtin the health coverage. The purpose of this assignment is to discussan alternative to the ACA and how the proposal addresses the issuesof the ACA.
Elementsof an Alternative to the ACA
Priorto the establishment of the ACA, Americans had three key concernswith the health care system that was in existence these issuesincluded a vast number of the uninsured, the high cost of care, andthe plight of uninsured citizens who had pre-existing conditions(Tate, 2012). An alternative to the ACA seeks to meet three basiccriteria it needs to be simple and explainable, it must notjeopardize employer-based insurance, and it must meaningfully addressthe three goals of real health-care reform: increasing the number ofinsured lowering costs and dealing with pre-existing conditions(Anderson, 2015). The proposal is three-legged and focuses onrepealing and replacing ACA in full. The following paragraphs discussthe proposal.
CriticalReview of the Alternative
FirstLeg: Ending Unfairness
Fordecades, the federal government has been driving citizens towardsemployer-provided health insurance through giving it preferentialtreatment in the tax code. This is viewed as unfair to someindividuals because it is not fair for some Americans to receive atax break while others fail to obtain. The proposal argues that itwould end unfairness in the tax code through tax credits to theindividually insured and uninsured (Anderson, 2015). This would helpin resolving the issue where only too few individuals have healthinsurance. According to the alternative, instead of eliminating theemployer-provided tax break, a solution can be found throughproviding corresponding tax break in the individual market, whichwould offer a level ground for all members. Besides, the alternativeclaims that to avoid suffering a remarkable decline in the number ofindividuals, who have insurance, such a tax break should take theform of a tax credit. Such a move would help citizens of allincome-levels. Furthermore, according to this alternative, it isproposed that every citizen that seeks insurance coverage, via theindividual market, should be in a position to use the tax credit toassist in buying an insurance policy of their choosing.
SecondLeg: Solving the Issue of Expensive Preexisting Conditions
Accordingto the alternative, six provisions should be used in solving theissue of expensive preexisting conditions. The alternative arguesthat no one needs to be dropped from the existing health insurancethat they have, or have their premiums or other expenses increased,based on a health condition. The protection needs to apply to allcoverage plans, including plans bought during the ACA period(Anderson, 2015). Another provision offered by the alternative isthat there needs to be a one-year purchase-in-period for young adultsseeking to buy health insurance on their own for the initial time,during which time the youths would be exempted from paying more orbeing handled differently by insurers because of preexistingconditions. The one-year purchase-in-period needs to start on anindividual’s 18thbirthday. For youths who remain under their parent coverage, theone-year period would offer a noble opportunity for youths to acquireinsurance cover as they make transition to adulthood. Also, thealternative seeks to resolve the issue by providing a one-yearbuy-in-period for newborns. During the time, parents should not bedenied coverage for their kids, or be charged more because their kidsbecome born with a preexisting condition. Furthermore, the transitionfrom employer-based insurance to individual market coverage needs tobe made easier. These individuals should be granted a two-month’sgrace period amid the employer-based plan and the time that theypurchase the individual market plan. In addition, another provisionis that there should be new regulations that protect Americans incase they desire to change from one plan to another. In such a case,individuals changing from one plan to another should not pay morebecause of their preexisting conditions. Moreover, another provisionproposed by the alternative is that there should be $7.5 billionallotted annually for state-run high-risk pools as part of thefederal funding. The federal funding need to be sent to each state asan established contribution and the amount allotted to every statemust be determined by the population of American citizens.
TheThird Leg: Lowering of Health Costs
Thealternative focuses on lowering the health costs attached to care. Inlowering health care costs, the proposal argues that the key tolowering the cost is through injecting new life into the individualmarket. The tax credits proposed by the alternative would have animpact of taking the foot of the government off the scale (Anderson,2015). However, this proposal would liberalize rules concerningcontributions to, as well as spending from health savings accounts.In encouraging the utilization of health savings accounts, andhelping individuals cover the daily costs of care, the alternativefocuses on offering a one-time tax credit of $1000 per person forindividuals who open health savings accounts for the initial time inthe individual market. However, although this tax credit is to beprovided to individuals, no person is supposed to claim the taxcredit for more than one time. Furthermore, the alternative proposesto lower health costs through having the Congress free up theinterstate buying of health insurance.
Howthe Proposal Addresses the Problems with ACA
TheACA offers large taxpayer-funded subsidies to the older citizens atthe expense of the youths, as well as to the near poor individuals,at the loss to the middle class. Also, ACA never offers tax breaks orsubsidies to the individual market plans (Eibner et al., 2014).However, this issue is going to be eliminated by the proposal sinceit would provide tax credits that would tend to equate theindividuals obtaining covers through the employer-funded andindividual market plans. This would resolve the problem of unfairnessportrayed by the ACA (Anderson, 2015). Besides, the ACA usesheavy-handed directives in addressing the problem of preexistingconditions has made health insurance premiums to be expensive.Furthermore, it is problematic to change from employer-based plans toindividual market plans with the ACA nevertheless, the proposedalternative offers a solution to this issue through providing a graceperiod, when one can change to the plan that he/she desires. Inaddition, the ACA does not provide a health care option that is cheapto all. Alternatively, with the proposed alternative, the use ofhealth savings accounts makes the proposal solve the issue ofexpensive health care.
Howthe Proposal Addresses the Concepts of ACA
Theproposal resolves the issue of discrimination through allowingAmericans to have an insurance plan that they desire. Besides,through recommending another alternative to tax breaks in theindividual market, the proposal eliminates discrimination. Throughthe proposed tax breaks, the alternative is in a position to bringhealthy insured into the insurance pool, as well as those individualswho were uninsured prior to the creation of ACA (Anderson, 2015).Furthermore, tax credits proposed by the alternative bring about theissue of affordability for the sake of the poor.
Thealternative to the ACA needs to be enacted wholly into law. This isbecause the alternative provides a solution to the challenges thatthe ACA already has. Thus, through enacting the proposal, as a whole,the American citizens are likely to benefit in entirety since theproblems that already exist with the ACA would be resolved. It is thedesire of any country to have a health care plan that seeks topromote equity, as well as eliminate discrimination as it attempts tobe cost effective. From the discussion, it has emerged that theproposal has these aspects in its provisions, which makes it anexcellent alternative.
Anderson,H.J. (2015). AnAlternative to Obamacare.Washington, D.C.: Hudson Institute.
Eibner,C., Saltzman, E., RAND Health., & Rand Corporation (2014).Assessingalternative modifications to the : Impact onindividual market premiums and insurance coverage.Santa Monica, CA: RAND.
Emanuel,E. J. (2014). ReinventingAmerican health care: How the will improve ourterribly complex, blatantly unjust, outrageously expensive, grosslyinefficient, error prone system.New York: PublicAffairs.
Hall,P.J. (2014). Realizing Health Reform’s Potential: Why a NationalHigh-Risk Insurance Pool Is Not a Workable Alternative to theMarketplace. TheCommonwealth Fund Pub.
Tate,N. J. (2012). ObamaCaresurvival guide.West Palm Beach, FL: Humanix Books.