AUSTIN —The Texas Public Policy Foundation provided the following statement in light of reports that the Alexander-Murray insurance subsidy bill contains provisions previously promoted by the Foundation:

“Proponents of the recently released Alexander-Murray insurance subsidy bill have touted inclusion of interstate compacts in their legislation as evidence of incorporating ideas espoused by the Texas Public Policy Foundation,” said Chip Roy, director of the Center for Tenth Amendment Action at TPPF.

“We are delighted TPPF’s views are being considered and the concept of state empowerment may be influencing federal legislation. Senators Alexander and Murray could achieve this goal by fully embracing state empowerment to allow healthcare and insurance products to be offered totally free from federal regulation, expanding healthcare sharing ministries, and removing constraints currently prohibiting cross-state insurance purchasing. Unfortunately, while interstate compacts are critical features of federalism, this legislation as structured would not provide these benefits.”

“In addition to subsidizing insurers who have profited off a badly broken and highly regulated system, the coverage being touted in Alexander-Murray would have to comply with all of Obamacare’s federal insurance mandates and regulations,” Roy continued. “Control remains firmly centralized in Washington D.C. This means that the mechanism included in this legislation would not take advantage of the true federalism-advancing features of interstate compacts and previous policy proposals echoed by the Texas Public Policy Foundation. Moreover, states already have the ability to enter into compacts and it should be noted that the legislation would not expand the existing power of HHS to loosen restrictions on selling insurance across state lines.”

“It is encouraging to see Senate leadership looking for ideas from TPPF on healthcare,” said Drew White, senior federal policy analyst. “Another good place to start, besides ensuring that the next budget reconciliation instructions provide for full repeal, is incorporating our suggestion of an opt-in framework for Obamacare’s regulatory structure. If adopted, the default rule would be freedom for all states from the cost-driving insurance regulations and mandates responsible for skyrocketing premiums in the first place. Instead of propping up insurance companies and subsidizing their profits in a highly regulated, federally controlled system, the Senate should take this simpler approach.”

“Currently, Texans and all Americans remain unable to purchase insurance coverage tailored to their specific health needs,” said White. “This can be remedied, costs can be lowered, and states can receive true flexibility if the Senate adopts our recommendations.”

For more information, please contact Alicia Pierce at[email protected]or 512-472-2700.                 

Chip Roy is the director of the Center for Tenth Amendment Action at Texas Public Policy Foundation.

Drew White is the Senior Federal Policy Analyst for the Center for Tenth Amendment Action at the Texas Public Policy Foundation.

The Texas Public Policy Foundation is a non-profit free-market research institute based in Austin. The Texas Public Policy Foundation aims to advance a societal framework that effectively fosters human flourishing based upon cooperation and mutually beneficial exchange of ideas and speech.

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