by John Davidson
Texas Public Policy Foundation
March 13, 2014
The Patient Protection and Affordable Care Act (ACA) requires most Americans to have health insurance by March 31, 2014, or else pay a penalty. These mandates, along with rules restricting how much insurance carriers can vary rates, have driven up the cost of individual and small group coverage. But there are ways for small businesses and individuals to opt-out of ACA-mandated coverage while maintaining a form of health coverage that fits their needs. Texas lawmakers must pass legislation authorizing individual self-insurance under state authority. Small employers will need Texas lawmakers to resist the temptation to impose restrictions on stop-loss insurance, which allows companies with a self-insured employee plan to protect themselves against catastrophic claims. Texas must make stop-loss more affordable by exempting stop-loss coverage from premium and maintenance taxes. These policies will enable Texas to resist the ACA and create a market-driven health care system.

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