President Biden has been focusing on healthcare policy as a key issue in this November’s election, hoping to make it a referendum on the Affordable Care Act (ACA). The campaign, along with former President Obama, has been organizing a national blitz to garner support for the ACA, which has seen over 21 million Americans signing up for coverage this year. However, despite the high enrollment numbers, the costly rules and regulations of the ACA have resulted in soaring premiums and deductibles, making it unaffordable for most Americans without billions in taxpayer subsidies.
Obamacare’s failure to deliver affordable care is evident in the data from over a decade of its implementation. The average individual market monthly premium has more than doubled from $215 to $477 for a benchmark plan this year, largely due to the mandates imposed by the ACA. Insurers are required to cover essential health benefits and all enrollees, regardless of health status or age, leading to increased costs that are passed on to consumers through higher premiums. Additionally, insurers are forced to limit the number of providers in their networks to reduce costs, further hindering access to care.
The Trump administration had expanded the options for consumers looking for affordable coverage by allowing short-term, limited-duration plans that are exempt from Obamacare’s mandates. These plans cost significantly less than exchange plans, providing a more affordable alternative for many Americans. However, the Biden administration recently announced rules that would restrict the duration of short-term plans to three months, effectively eliminating this affordable coverage option for many individuals.
In contrast to the Democrats’ approach of expensive mandates and subsidies, congressional Republicans have introduced measures aimed at providing affordable healthcare options. The ACCESS Act, introduced by Reps. Greg Steube and Kat Cammack, would allow low-income Americans to invest their cost-sharing reduction subsidies from Obamacare in tax-advantaged health savings accounts, giving them more control over their healthcare spending. The Health Care Fairness For All Act, sponsored by Rep. Pete Sessions, offers tax credits through HSAs to help individuals pay for insurance or other healthcare expenses, providing more options beyond the narrow networks enforced by Obamacare.
These Republican proposals emphasize competition, transparency, and consumer choice as the keys to achieving affordable healthcare, rather than heavy regulation, mandates, and taxpayer subsidies. The bills aim to empower individuals to make informed decisions about their healthcare and access the services that best suit their needs. The popularity of these measures, with support from over 80% of Americans, indicates a strong demand for alternative solutions that prioritize affordability and accessibility in the healthcare system.
