Obamacare was trumpeted as a revolutionary bill when it passed into law in 2010. If a law’s impact depends on its number of pages, then the 955-page Affordable Care Act would have become one of the most impactful laws in U.S. history. But that has not been the case. That’s why Senator Ted Cruz’s innovative Personalized Care Act, weighing in at a paltry four pages but possessing powerful remedies, is desperately needed. The Personalized Care Act could transform health care by liberating Americans from employer-based health insurance, helping employers, providing new coverage options, and improving care quality.
This clever bill promises to revolutionize the U.S. employer-based health care system for the first time since its inception in 1942. Today, more than half of people under age 65 obtain insurance through their employer. That’s because employers purchase health plans with pre-tax dollars, while individuals buy their policies with post-tax dollars—substantially increasing the cost.
The Personalized Care Act, S. 3112, takes away this employer advantage by letting patients themselves buy medical coverage with pre-tax Health Savings Accounts (HSAs).