PPACA Foe Proposes Repeal and Replacement with Market-driven Tools

Critics say health reform is part of a disturbing trend of the government displacing free markets, and they note that it looks unlikely to curtail spiraling health costs. Well, now Rep. Sean Duffy (R-Wis.) – a freshman House member – has introduced a bill that would repeal the Patient Protection and Affordable Care Act (PPACA) and rely on consumer-directed health care to improve delivery and availability of services. Duffy’s bill, the Patient Centered Healthcare Savings Act (H.R. 3682), would:

• allow HSA holders to pay health insurance premiums from their accounts;
• allow rollover of up to $500 per year of flexible spending account (FSA) funds left unused at the end of the year, thus amending the “use-it-or-lose-it” rule;
• allow senior citizens to continue contributing to their HSAs after they qualify for Medicare;
• add health programs and supplements as qualified medical expenses;
• allow employees with an account to double their catch-up contributions;
• cover people with pre-existing conditions;
• remove lifetime coverage caps;
• provide $25 billion for state high-risk pools and reinsurance programs;
• require every state to operate either a high-risk pool or reinsurance program;
• lower the maximum age that a policyholder’s children can be covered through a plan to age 23;
• allow individuals to purchase health care across state lines; and
• require providers to publish their prices.

Prospects

The bill is now before eight House committees: Energy and Commerce, Ways and Means, Education and the Workforce, Judiciary, Natural Resources, House Administration, Rules and Appropriations. The fate of H.R. 3682 is far from certain.

Even if it were to pass the House and Senate and make it to President Obama’s desk, Obama would obviously not sign it. So if Duffy’s bill has any chance to become law, it would have to pass the House and Senate by veto-proof majorities.

Supporters say the bill might contribute to new health legislation after the 2012 elections, or if the PPACA does not survive its upcoming challenge before the U.S. Supreme Court. Here are some remarks from Duffy on the proposal.