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    Obamacare Repeal: What May Replace It

    Tax Credits for Health Insurance Premiums continued...

    Pros: This approach limits how much the federal government spends on tax credits to help people afford insurance, Corlette says.

    Proponents also say it offers more people financial help to buy insurance, and more flexibility when choosing insurance plans. Most Republican plans do away with current requirements for insurers to cover a core set of essential health benefits. That allows more variety in the type of plans insurers can offer. Health care plans that don’t cover services such as maternity or prescription drugs are less expensive. So although tax credits offered in Price’s plan are far less generous than those available through Obamacare, because the plans would cover fewer benefits, they would also be less costly.

    Like Obamacare, a number of Republican plans allow people to apply tax credits in advance as a way of lowering their monthly premium costs.

    Cons: Blumberg says the fact that the tax credits don’t vary by income means that no matter how much money you earn, the financial assistance is the same.

    “You’re prioritizing giving the rich a tax cut they don’t need and short-changing the guy down the street who does need assistance,” she says.

    In addition, Corlette says that tax credits outlined in Ryan’s plan would rise with general inflation but are not tied to medical inflation.

    “The problem with that is medical inflation has tended to grow much faster than general inflation, so if that historic trend continues, the value of the tax credit shrinks over time.”

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    Allowing Drug Imports From Other Countries

    In his interview for Time magazine’s "Person of the Year,” Trump said, “I’m going to bring down drug prices. I don’t like what’s happened with drug prices.”

    Trump’s website outlines broad plans for health care, which include “allowing consumers access to imported, safe and dependable drugs from overseas.” The idea has typically been supported by many Democrats as well, including Trump opponent Hillary Clinton.

    Although it’s unclear how this would work, experts say it’s likely that various programs or insurers would be allowed to make deals in order to bring medications from other countries to Americans.

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