The Alternative to Obamacare, originally developed by Jeffrey Anderson and released by the 2017 Project as A Winning Alternative to Obamacare, first released on February 10, 2014, starts by fully repealing Obamacare. The replacement consists of three major components:
- Obamacare’s income-related subsidies are replaced with less expensive tax credits that vary only by age (0-17, 18-34, 35-49 and 50-64).
- The long-standing tax exclusion for employer-provided health insurance coverage is retained, but the ACA’s Cadillac tax is replaced by a functionally-equivalent cap on the amount of the exclusion (set at the 75th percentile of annual employer sponsored insurance premiums); workers in firms with fewer than 50 full-time-equivalent workers would be allowed to purchase non-group coverage with tax credits.
- Annual contribution limits for health savings accounts are increased to $6,250 for individuals and $12,500 for families. As well, enrollees in health savings accounts are eligible to receive a one-time, refundable tax credit of $1,000 to be deposited directly into the account.