First, we should provide an advanceable, refundable tax credit that all Americans can use to purchase health insurance. The value of these credits should increase every year, and we should set the tax preference for employer-sponsored insurance on a glide path to ensure that it will equal the level of the credits at the end of the decade. This will prevent large-scale disruptions and reform one of the most significant distortions in our tax system.
Second, we must reform insurance regulations to encourage innovation. Americans with pre-existing conditions should be able to find coverage through their state’s federally-supported, actuarially-sound high risk pools. Americans living in high-cost states should have the opportunity to purchase coverage across state lines. Consumer-centered products like health savings accounts should be expanded. And under no circumstances should taxpayers be asked to bail out an insurance company that loses money, as is currently the case under ObamaCare.
Third, we must save Medicare and Medicaid by placing them on fiscally sustainable paths. Without reforms, these programs will eventually cease to be available for those that need them. I believe we must move Medicaid into a per-capita cap system, preserving funding for Medicaid’s unique populations while freeing states from Washington mandates. Medicare, meanwhile, should be transitioned into a premium support system, empowering seniors with choice.