[Congressional Record (Bound Edition), Volume 156 (2010), Part 7]
[Extensions of Remarks]
[Page 9995]
[From the U.S. Government Publishing Office, www.gpo.gov]




           INTRODUCTION OF THE PRIVATE OPTION HEALTH CARE ACT

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                             HON. RON PAUL

                                of texas

                    in the house of representatives

                         Thursday, May 27, 2010

  Mr. PAUL. Madam Speaker, I rise to introduce the Private Option 
Health Care Act. This bill places individuals back in control of health 
care by replacing the tax-spend-and-regulate health care law Congress 
passed last month with reforms designed to restore a free market health 
care system.
  The major problems with American health care are rooted in government 
policies that encourage excessive reliance on third-party payers. The 
excessive reliance on third-party payers removes incentives for 
individual patients to concern themselves with health care costs. Laws 
and policies promoting Health Maintenance Organizations, HMOs, resulted 
from a desperate attempt to control spiraling costs. However, instead 
of promoting an efficient health care system, HMOs further took control 
over health care away from patients and physicians. Furthermore, the 
third-party payer system creates a two-tier health care system where 
people whose employers can afford to offer ``Cadillac'' plans have 
access to top quality health care, while people unable to obtain health 
insurance from their employers face obstacles in obtaining quality 
health care.
  The Private Option Health Care Act gives control of health care back 
into the hands of individuals through tax credits and tax deductions, 
improving Health Savings Accounts and Flexible Savings Accounts. 
Specifically, the bill:
  A. Provides all Americans with a tax credit for 100 percent of health 
care expenses. The tax credit is fully refundable against both income 
and payroll taxes;
  B. Allows individuals to roll over unused amounts in cafeteria plans 
and Flexible Savings Accounts (FSA);
  C. Provides a tax credit for premiums for high-deductible insurance 
policies connected with a Health Savings Accounts (HSAs) and allows 
seniors to use funds in HSAs to pay for medigap policies;
  D. Repeals the 7.5 percent threshold for the deduction of medical 
expenses, thus making all medical expenses tax deductible.
  This bill also creates a competitive market in heath insurance. It 
achieves this goal by exercising Congress's authority under the 
Commerce Clause to allow individuals to purchase health insurance 
across state lines. The near-monopoly position many health insurers 
have in many states and the high prices and inefficiencies that result, 
is a direct result of state laws limiting people's ability to buy 
health insurance that meets their needs, instead of a health insurance 
plan that meets what state legislators, special interests, and health 
insurance lobbyists think they should have. Ending this ban will create 
a truly competitive marketplace in health insurance and give insurance 
companies more incentive to offer quality insurance at affordable 
prices.
  The Private Option Health Care Act also provides an effective means 
of ensuring that people harmed during medical treatment receive fair 
compensation while reducing the burden of costly malpractice litigation 
on the health care system. The bill achieves this goal by providing a 
tax credit for negative outcomes insurance purchased before medical 
treatment. The insurance will provide compensation for any negative 
outcomes of the medical treatment. Patients can receive this insurance 
without having to go through lengthy litigation and without having to 
give away a large portion of their awards to trial lawyers.
  Finally, the Private Option Health Care Act also lowers the prices of 
prescription drugs by reducing barriers to the importation of Food and 
Drug Administration (FDA)-approved pharmaceuticals. Under my bill, 
anyone wishing to import a drug simply submits an application to the 
FDA, which then must approve the drug unless the FDA finds the drug is 
either not approved for use in the United States or is adulterated or 
misbranded. This process will make safe and available imported 
medicines affordable to millions of Americans. Letting the free market 
work is the best means of lowering the cost of prescription drugs.
  Madam Speaker, the Private Option Health Care Act allows Congress to 
correct the mistake it made last month by replacing the new health care 
law with health care measures that give control to health care to 
individuals, instead of the federal government and politically-
influential corporations. I urge my colleagues to support this bill.

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