The new Republican healthcare plan is rooted in common sense and a simple working model, which is what makes it sheer genius. The entire point of Obamacare was that it intended to be affordable, hence the formal name of Affordable Care Act. But it soon became a burden on many due to rising premiums and lack of choice, if any choice at all.
Do you remember the Bush tax credits? Even the poor working family who didn’t get a tax refund could count on that sweet couple of grand coming back from Uncle Sam each February. Those credits kept a lot of people afloat, and also served to stimulate the economy. They were a lifeline, and ironically, probably helped to fill the gap in peoples’ incomes that they were shelling out for in commercial healthcare through their jobs. Sadly, Obama let these credits lapse when they were slated to expire.
Now, we are back to tax credits, without a mandate. Will people have to spend them on healthcare? Maybe, but most likely not; because that would be another government mandate which the Republicans abhor. So, what will people do with that extra few grand each year? Most likely, they will save it. Then the new Republican healthcare plan becomes like an HSA, a health savings account. Long viewed as a luxury for people with disposable income, it will now become a real working person’s safety net.
Additionally, it can be viewed as a deductible. Think about it: A family’s worst fear is someone getting sick or injured, right? But how often does that actually happen? People can go for years, even a lifetime without getting sick or injured, all the while paying hundreds of thousands of dollars in health insurance. But should someone need to go to the emergency room, that few grand in tax credits will most likely pay bills such as the ambulance ride and the first night in the hospital. After that, the new Republican healthcare plan will kick in. Voila, you’re covered, all while paying reasonable premiums on real, premium, private health insurance! And if you don’t have to go to the hospital or see a doctor in a given year, you’ve got some pocket money to play with.
So, it looks like the commonsense approach of the new Republican healthcare plan is a win-win for everybody: The savings to the individual, and the country.