A Solution from the Republican Study Committee for Access to Affordable, Quality Health Care for All Americans

H.R. 3400 — The Empowering Patients First Act

Pillar #1: Access to Coverage for All Americans
Makes the purchase of health care financially feasible for all – Grants individuals and small businesses an income tax deduction on health care premiums, just as individuals with employer-provided insurance currently pay premiums with pre-tax dollars.

Covers pre-existing conditions – Grants states incentives to establish high-risk pools and reinsurance pools and expands Federal block grants for these pools.

Protects employer-sponsored insurance – Allows employers to automatically enroll employees in an employer-sponsored plan, though employees have the right to opt-out at their choosing. Small businesses would receive tax incentives if they implement auto-enrollment policies.

Shines sunlight on health plans – Establishes health plan and provider “portals” in each state to give consumers more information about the various health insurance options available to them.

Pillar #2: Coverage is Truly Owned by the Patient
Grants greater choice and portability – Gives patients the power to own and control their own health care coverage by providing affordable healthcare options that are not tied to employment.  Too many patients with serious conditions must choose between beneficial career moves and losing their health insurance.

Expands the individual market – Creates pooling mechanisms such as association health plans and individual membership accounts.  Individuals are also allowed to shop for health insurance across state lines.

Reforms the safety net – Medicaid and State Children’s Health Insurance Program beneficiaries are given the option of a voucher to purchase private insurance.  States will be required to enroll the most low-income children and families first before they can expand their programs to those above 200 percent of the federal poverty level.

Pillar #3: Improve the Health Care Delivery Structure
Reimburses physicians to ensure continuity of care – Rebases the Sustainable Growth Rate (SGR) to prevent the over 20 percent cut in Medicare physician reimbursement scheduled for 2010.

Promotes healthier lifestyles – Allows for employers to offer discounts for healthy habits through wellness and prevention programs.

Institutes doctor-led quality measures – Allows medical specialty societies, not the government, to develop healthcare quality measures and best practices.

Pillar #4: Rein in Out-of-Control Costs
Plan is Fiscally Responsible – The cost of the plan is completely offset through decreasing defensive medicine practiced by doctors, increased health care efficiencies, ferreting out waste, fraud and abuse in our entitlement programs, plus an annual one-percent non-defense discretionary spending step down.