With health care costs spiraling out of control, our plan repeals Obamacare and replaces it with new ways to fund health care. We offer consumers more choices of coverage and full ownership of their coverage. States are given much greater latitude to experiment and innovate in their health care programs.
This ill-conceived law adds trillions of dollars in government spending to a health care system that is already unaffordable. It also increases federal controls and imposes heavy costs on states, businesses, and households. The Heritage plan repeals Obamacare and replaces it with a consumer-centered health care system that America can afford.
A new tax credit for health insurance
The Heritage plan provides a tax credit of $2,000 for individuals and $3,500 for families - far more than under current law. This can supplement what your employer pays for your health insurance, or you can use it to buy insurance outside your workplace.
Direct assistance for lower-income workers
If your income is in the lower brackets, you receive premium support to buy the same health insurance as those with higher incomes can - allowing those on Medicaid a better quality option. Very low-income families with children receive total assistance worth as much as $9,000.
Tax-free savings for health needs
Under our plan, your savings for health care (or other purposes) no longer face double taxation. If you don't use all of your health credit or premium assistance for insurance, you can put the remainder in a special savings account with tax-free withdrawals.
A new Medicaid safety net
In 2014, the Heritage plan caps federal Medicaid spending at 2007 levels. States receive block grants and are given greater latitude to develop innovative ways to reduce costs and improve health care for the poor elderly and disabled. Based on agreed goals, this approach gives states the right incentive to pursue high-quality, innovative care.