Republicans Introduce Health Reform Plan That Would Provide Tax Credits To Purchase Health Coverage, Establish State Insurance Exchanges

Sens. Richard Burr (R-N.C.), Lamar Alexander (R-Tenn.) and Tom Coburn (R-Okla.) and Reps. Devin Nunes (R-Calif.) and Paul Ryan (R-Wis.) on Wednesday introduced the Patients" Choice Act (S 1099, HR 2520), a counter proposal to Democratic health care reform plans that would create state-based health insurance exchanges and provide U.S. residents tax credits to subsidize coverage premiums, Roll Call reports (Drucker [1], Roll Call, 5/20). The act would require states to separately establish health insurance exchanges made up of private health insurers through which individuals could pick their coverage. The legislation would provide $5,700 in tax credits to families and $2,200 in tax credits to individuals to subsidize coverage premiums, the Washington Times reports (Washington Times, 5/21). An additional $5,000 tax credit would be provided to low-income families (Budoff Brown, Politico, 5/20). The credits would be funded by taxing employer-provided health benefits (Washington Times, 5/21). Under the plan, states would be allowed to shift state residents covered by Medicaid into private coverage (Wayne, CQ Today, 5/20). The measure also would establish a system of health coverage auto-enrollment at emergency departments, motor vehicle departments and through employers (Politico, 5/20). The plan does not establish any new government health care programs (Drucker [1], Roll Call, 5/20). According to Politico, the bill"s sponsors hope to achieve universal coverage for U.S. residents (Politico, 5/20). According to the bill"s sponsors, the plan is budget neutral (Drucker [1], Roll Call, 5/20). Prospects