JC Online - Rep. Rokita: A Better Way for Health Care Reform

Op-Ed

By Todd Rokita

Though they have been largely ignore by the media, before Obamacare was enacted, Republicans were offering numerous free market alternatives and patient-centered reforms to lower costs, empower consumers and help Americans with pre-existing conditions -- all without putting federal bureaucrats in charge of our health care system, without costing Americans their jobs, doctors and health insurance, and without putting more debt of the backs of our children and grandchildren.

Last week several members of the Republican Study Committee and I introduced the American Health Care Reform Act, bringing together the brightest reform ideas to replace Obamacare and improve health care delivery in America.

The greatest challenge is making health care more affordable and accessible for all Americans. And the truth is, people who will suffer the most under Obamacare are the same people suffering the most under the current economic conditions -- particularly young people, minorities and single parents.

Above all, creating cost transparency in health care is critical to driving down prices. As Americans, we are great consumers. We know how to find a deal. When you need a new set of tires, you shop around. You go to Firestone, Goodyear and Sears, and you look for the best product at the best price. That is value.

When was the last time you remember seeing what your doctor actually billed your insurer? When was the last time you shopped around for health care services like you would when purchasing any other good or service? The answer to both questions is probably never. The way our system is currently devised, it is nearly impossible for consumers to get the information needed to find a good deal. Our bill begins shedding light on the true cost of health care by disclosing Medicare claims information so Americans can see what various providers are actually charging for their services.

Beyond transparency, the next best thing we can do to get more Americans insured without government mandates, tax penalties and the other dangerous side effects of Obamacare is to foster competition. The American Health Care Reform Act does this is several ways.

First, we encourage competition by allowing Americans to purchase insurance not just in their state, but from insurers in other states. The insurance markets in most states are dominated by just a few insurers. Allowing the purchase of insurance across state lines creates competition and cheaper plans.

Second, we equalize tax treatment so that individuals get the same tax breaks for purchasing insurance that big corporations get for providing insurance for their employees. Individuals will get a $7,500 tax deduction and families will receive a $20,000 tax deduction for purchasing their insurance in the individual market. Empowering individuals and families by letting them keep more of their own money will allow more Americans to purchase health insurance, and as a result, expand the pool of people paying premiums, thereby driving down prices.

Third, we strengthen health savings accounts. HSAs allow Americans to save pre-tax dollars for their medical care, and our bill permits unemployed Americans to pay their health insurance premiums with HSA funds.

Pre-existing conditions are a real problem, and they are the most common issue proponents of Obamacare use to justify their massive expansion of federal power. While on the surface it may sound good, forcing insurance companies to cover pre-existing conditions of the unhealthy and seriously ill only results in higher premiums being distributed across the board, but particularly to young and healthy Americans. Instead of spreading the cost around and encouraging Americans to drop their health insurance, we propose funding high-risk pools from which Americans with pre-existing conditions can purchase affordable insurance.

Another critical reform addressed by the American Health Care Reform Act is medical malpractice law. The trial lawyers have a powerful Washington lobby that has obstructed reform for years. Common sense limits of trial lawyer fees and non-economic damages while maintaining strong protections for patients is critical to bend the health care cost curve in a positive direction.

Taken together, these free market, consumer-driven reforms will make health care more accessible and affordable for all Americans. I presented our plan to the Indiana State Medical Association last week, and they have endorsed it. The American Health Care Reform Act is a prescription for better health care delivery without the dire side effects of Obamacare. The American Health Care Reform Act is a better way.

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