To address those with pre-existing conditions, who have been among the major targeted beneficiaries of Obamacare, the GOP proposal would require insurers to offer coverage to anybody who has applied as long as they have maintained continuous coverage, regardless of whether they are switching health plans or shifting from employer-based health care to the individual market. The theory is that this would offer some protection to those with pre-existing conditions without having the same effect on premiums as Obamacare’s full ban on the practice. At the same time, the idea is that this would create an incentive for everybody to maintain their insurance coverage, thus negating the need for the individual mandate.
For years, most free market health care proposals began with the idea of ending the discrimination in the tax code that gives an unfair advantage to those who obtain health insurance through their employers. But in consideration of the backlash against the way that Obamacare has disrupted people’s insurance coverage, the new GOP proposal would maintain the employer health insurance bias. Instead of scrapping the employer health insurance tax exclusion, the proposal would merely cap it at 65 percent of the average plan’s costs.