The House Republican leadership unveiled a plan to gut the Affordable Care Act’s marketplaces Tuesday night and replace it with a system of private marketplaces run by private insurers.
The House plan, unveiled during a conference call with House GOP members, would replace the federal health care system with a single, private marketplace that would have no federal involvement, according to House Majority Leader Kevin McCarthy (R-Calif.).
The legislation, known as the House Freedom Caucus, has already attracted support from Republicans, who are concerned about the Affordable Exchange Marketplaces being used by insurance companies to sell policies without government interference.
House Majority Leader Rep. Kevin McCarthy, R-Calif., speaks at the Capitol in Washington, Wednesday, March 26, 2020.
House Majority Speaker Rep. Mike Pompeo, R, Kan., listens during a press conference at the House Ways and Means Committee on Capitol Hill, March 25, 2020, in Washington.
House Speaker Mike Pompeoe, R., speaks during a media availability at the National Press Club, March 24, 2020 in Washington.(AP Photo/Susan Walsh)The House GOP plan, which was unveiled during an all-day meeting Tuesday night, is likely to draw criticism from the president, who said the plan was a “death knell” for the Affordable Health Care Act, or Obamacare.
The House GOP bill would replace Obamacare with a plan where insurance companies would sell policies directly to consumers, leaving consumers to buy coverage on their own or through a government-run exchange.
Under the House plan insurers would sell health plans directly to customers, without any federal oversight.
But the legislation would require that the insurance companies offer at least “substantially comparable” coverage, a requirement that many Democrats have criticized.
The Congressional Budget Office estimated that the House bill would reduce the federal deficit by $717 billion by 2026 and reduce the national debt by $1.2 trillion by 2027.
But McCarthy said that the CBO found the Senate plan would reduce both deficits and the national deficit by about $1 trillion over a decade.
“I believe that the Senate bill would substantially improve the quality of care in the individual market and in the Medicaid program, and I also believe that it would reduce health care costs and increase consumer choice,” McCarthy said on the conference call.
“And I do not believe it would do so in a way that is sustainable and that would allow the economy to recover.”
The House Republican plan would also create a system in which insurance companies could charge higher premiums and raise deductibles than they would in the marketplace.
Under the Senate, this would be done through a single-payer system that would be operated by the government and would be run by the states,” McCarthy added.