Republicans are attempting to coalesce around a replacement plan for Obamacare. Last year, Congressional Republicans released a health care reform plan called “A Better Way.” (here) Rep. Tom Price (R-GA), the newly confirmed Secretary of the Department of Health and Human Services, has had a replacement bill the past several Congresses. (here) There are many similarities between the two proposals and the U.S. House will undoubtedly use them as starting point for debate. (here)

The U.S. Senate is now receiving a number of health care reform bills. Within the past few weeks, Senators Collins (R-ME) and Cassidy (R-LA) released a proposed plan that is essentially a variation of Obamacare. (here)

Senator Rand Paul (R-KY) recently put forth a terrific, comprehensive replacement bill. (here) His plan recognizes the problems with our health care system before Obamacare and offers realistic, free market solutions that would potentially decrease costs and offer more choices for patients.

First of all, his proposal addresses the third-party payer system in the U.S. Almost 85 percent of health care is paid for by someone else, rather than the patient. This is an economic imbalance that disconnects the patient, as a consumer of health care, from the cost. It also, in the case of employer-paid health insurance, causes job-lock, where an employee must stay with an employer simply for health insurance reasons. Paul’s plan would allow individuals to take the same tax deduction that employers now take for the cost of employee health benefits.

Second, Senator Paul’s bill would expand the availability and use of tax free health savings accounts.

Third, his proposal would enact high risk pools for people with high use and high medical costs. He also addresses the pre-existing condition issue by allowing a two year grace period for people with these conditions who maintain health insurance coverage.

Fourth, he promotes association health plans and encourages religious and fraternal organizations to offer insurance to their members.

Lastly, he understands that Medicaid is poor-quality health insurance and is financially not sustainable in its present form. His plan offers real Medicaid reform with block grants and more state control.

Republicans must find a replacement plan for Obamacare. Senator Paul’s bill, combined with the leading House proposals, would be a good starting point.