Obamacare Replacement: More Covered, Fewer Pained

For five years, President Obama has ridiculed Republicans for not having “a meaningful alternative” to Obamacare. The tables are turning.

Republicans announced a plan on February 4, just weeks before the Supreme Court will hear a second challenge to the health law. If the president loses in court, he will have to deal with this GOP blueprint, not dismiss it. Gone are the major features of the Affordable Care Act, including mandates on individuals and employers, numerous taxes, and the Independent Payment Advisory Board. Instead, the blueprint offers tax credits for low-income citizens, more consumer choice, regulatory relief for employers and medical malpractice reform.

Right now, it’s pie in the sky. The president would veto it. But when a crisis occurs, “the politically impossible becomes the politically inevitable,” explained economist Milton Friedman. Whatever idea is ready to go becomes the course of action.

On March 4, the Supreme Court will hear a challenge to Obamacare subsidies offered in 36 states where consumers use healthcare.gov. The court will announce its ruling in June. The letter of the law permits subsidies only in the 14 states that set up their own exchanges, not in the other 36. If the president loses, 6.5 million people in those 36 states would have to pay the true cost of their “affordable” plans, in some cases quadruple. Only the sickest would keep paying, and Obamacare would “death spiral” with premiums soaring and enrollment crashing.

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