10 – Give Block Grants to States for Medicaid – Romney wants all states to have the same flexibility as he had when he crafted the Massachusetts health care plan. Providing block grants from the federal government to the states would reduce federal regulations on how medicaid funding can be used by the states. Currently, there are many restrictions placed on states regarding how each state is allowed to use federal money to provide health care. By providing block grants, states would have more room to experiment and craft their own unique healthcare solutions. One additional benefit of block grants is that these grants would make it so that medicaid would no longer be an “open checkbook” on the federal government.
11 – Provide “Innovation Grants” to States for Reform - Innovation grants would be extra funding used by the states for the development of unique healthcare reforms. These grants would be competed for by different states. Romney envisions these grants as the “carrot” that will entice states to begin reforming their healthcare systems, rather than the “stick” of federal laws that forces states to reform or face a penalty. Obamacare currently uses the “stick” approach rather than the “carrot.”
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1 – Give tax deductions for purchasing health insurance to individuals who don’t have access to employer health insurance - Romney believes that individuals should be able to have the same tax advantages as an employer when purchasing health insurance. It isn’t fair that an individual be penalized with higher rates for health insurance simply because his/her employer doesn’t provide it. Such a penalty dissuades many from buying insurance when it is not offered by their employer. Romney wants to level the playing field so everyone gets equal tax treatment. Also, such a plan would give consumers a choice of accepting their employers plan or purchasing insurance on their own on the open market. If the tax incentives are the same, this would increase competition among insurers and allow individuals to pick a health plan more suitable for their needs.
2 – Allow people to purchase health insurance across state lines – This will increase competition and decrease monopolies of health insurers. It is interesting to note that current law in the U.S. actually allows for insurers to have a monopoly over a given region of the country. These monopolies need to end in order to let the free market work more effectively to lower health care costs. (Source, No Apology, pg 177.)
3 – Allow Individuals to form “purchasing pools” - Currently individuals not part of an employers group are penalized with much higher insurance premium costs. Individuals who currently don’t have the option to buy insurance through their employer are forced to buy a single policy on the “open market” which is much more expensive. Allowing individuals to form purchasing pools would give consumers a lower price for health insurance and more choice of healthcare plans. No longer would an individual have to take their employers health insurance if they didn’t like the plan offered by their employer. Individuals could choose to shop for insurance on their own with a purchasing pool that would have the similar tax advantages and discounts as their employer.
4 – Encourage a “Consumer Reports” style ratings system for insurance companies – Currently it is very difficult to compare one insurance company with another. Consumers need to have access to a ratings system in order to be better informed. For example, if a particular insurance company has poor customer service, a small network of doctors, has a habit of declining coverage of certain medical procedures, or simply mistreating their clients, then the public has a right to know. Currently there is no way consumers can discover which companies are truly providing the best customer service or value for their dollar. Romney wants to change that and make the insurance companies more accountable to how they treat their customers. In a similar vein, hospitals would have a rating system in order to establish cost and quality comparisons for the public. Romney knows from his days at Bain and Company when he advised hospitals that some hospitals charge exorbitant rates but have similar quality results when compared to other hospitals in the same area.
5 – Modify health savings accounts – Allow consumers to use HSA savings to pay health care premiums! It’s hard to believe that laws regulating HSA’s currently don’t allow consumers to pay insurance premiums with their HSA, but they do not. This simple change would have a profound impact for millions of Americans. On a different note, HSA’s help form cost-conscious consumers and motivate consumers to shop around for the best “deal” at the best price. HSA’s would get healthcare working more like a market. The current healthcare market, is really not a “market” at all because patients have very little incentive to price-compare, and find higher quality at lower prices.
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RomneyCare – The Truth about Massachusetts Health Care | Mitt Romney Central