Sens. Susan Collins, R-Maine, and Bill Cassidy, MD, R-La., unveiled an ACA alternative Monday dubbed the "Patient Freedom Act of 2017," which would give states the option to keep the ACA.
The legislation is based on a proposal with the same name from 2015, The Hill reported. Sen. Cassidy also submitted a proposal in 2016 called "The World's Greatest Healthcare Plan." Here are eight things to know about Sens. Collins and Cassidy's latest ACA replacement plan.
1. The plan would give states the power to decide how to implement healthcare for their constituents. It repeals several mandates under the ACA while keeping consumer protections, and then lays out three options for states.
2. The proposal would repeal Title I of the ACA, except for the "essential" consumer protections. Title I includes the most of the health insurance market forms under the ACA. For example, Title I includes the health insurance exchanges and associated requirements, such as essential health benefits, actuarial value requirements (platinum, gold, silver and bronze), tax credits and the individual mandate. The Patient Freedom Act would retain several parts of Title I that protect consumers, such as prohibitions on annual and lifetime limits, pre-existing conditions and discrimination, as well as provisions for young adults to stay on their parents' plans until age 26.
3. The proposal offers states three healthcare options, the first of which is to keep the ACA. The first option would allow states to reinstate Title I of the ACA and continue to receive premium tax credits, cost-sharing subsidies and Medicaid funding from the federal government.
4. The second option would allow states to create their own market-based system with federal assistance. Under this option, states would receive funds equal to 95 percent of premium tax credits and cost-sharing subsidies. It would also receive funding equal to the federal match for Medicaid expansion. However, these funds would be funneled directly into patient-specific health savings accounts. This option would also allow states to auto-enroll uninsured people in basic health insurance, requiring them to opt out rather than sign-up for coverage.
5. The second option also includes a number of other provisions intended to benefit patients with HSAs. For states that choose to create their own market-based system with federal assistance, the proposal includes a cap out-of-network surcharges for emergency care paid for with an HSA, and it would require providers to publish prices for services paid with an HSA or cash.
6. The third option allows states to design and implement their own plan without federal assistance. This option gives states full flexibility to design their own plan and regulate their own insurance markets.
7. The plan received a swift rejection from Senate Minority Leader Chuck Schumer, D-N.Y. Though he said he respects Sens. Collins and Cassidy, Sen. Schumer said he felt the proposal simply "illustrates the dilemma" of Republicans, according to The Hill. "Ultimately, this proposal is an empty facade that would create chaos — not care — for millions of Americans," Sen. Schumer said in a statement, according to The Hill. "Republicans should drop their disruptive repeal plans and work with Democrats to improve, not gut, the ACA and healthcare system for all Americans."
8. The plan has not been formally introduced yet, according to The Hill. However, some Republicans are already onboard, including Sens. Johnny Isakson, R-Ga., and Shelley Moore Capito, R-W.Va. Sen. Cassidy remains optimistic Republicans are moving toward the notion replacement legislation should immediately follow the ACA repeal, according to the report.
More articles on leadership and management:
President of Kalispell Regional Health Care dies of cancer
8 must-reads for healthcare leaders this week
Trump's executive order on the ACA: 5 things to know