Approved by Governor: Arkansas Law Will Expand Health Freedom

bigstock-Concept-Of-Us-National-Healthc-71864257-smallBy Mike Maharrey

Arkansas Gov. Asa Hutchinson has approved a bill that will help facilitate healthcare freedom and set the stage to nullify federally run healthcare in practice.

Rep. Justin Gonzales (R-Okolona) introduced House Bill 2240 (HB2240) on March 6. The legislation specifies that direct primary care agreements (sometimes called medical retainer agreements) do not constitute insurance, thereby freeing doctors and patients from the onerous requirements and regulations under the state insurance code.

The House passed HB2240 by an 84-2 vote on March 17. Last Thursday, the Senate approved the measure 34-0. Gov. Asa did not veto HB2240 within 5 days of transmittal to his office, giving tacit approval. The law will go into effect 90 days after the legislature officially adjourns – scheduled for May 5.


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According to Michigan Capitol Confidential, by removing a third party payer from the equation, medical retainer agreements help both physicians and patients minimize costs. Jack Spencer writes:

Under medical retainer agreements, patients make monthly payments to a physician who in return agrees to provide a menu of routine services at no extra charge. Because no insurance company stands between patient and doctor, the hassles and expense of bureaucratic red tape are eliminated, which have resulted in dramatic cost reductions. Routine primary care services (and the bureaucracy required to reimburse them) are estimated to consume 40 cents out of every dollar spent on insurance policies, so lower premiums for a given amount of coverage are another potential benefit.

This represents the kind of cost control Obamacare promised, but failed to deliver.

Under Obamacare, regulations define such programs as a primary care service and not a health insurance plan, and current IRS policy treats these monthly fee arrangements just like another health plan.

A FIRST STEP

At this point, it appears the Republicans will not actually repeal Obamacare, and the changes to the ACA proposed in the Ryan plan would have arguably made things worse. Regardless, state actions can help completely bring down the Affordable Care Act , or any national healthcare plan the Congress comes up with in the future.

Oftentimes, supporters of Obamacare criticize opponents for not having any alternative. Direct primary care offers one.

These direct patient/doctor agreements allow a system uncontrolled by government regulations to develop. It makes doctors responsive to patients, not insurance company bureaucrats or government rule-makers. Allowing patients to contract directly with doctors via medical retainer agreements opens the market. Under such agreements, market forces will set price for services based on both demand instead of relying on central planners with a political agenda. The end-result will be better care delivered at a lower cost.

By incentivizing creative healthcare solutions, the market will naturally provide better options, such as the Surgery Center of Oklahoma, This facility operates completely outside of the insurance system, providing a low-cost alternative for many surgical procedures.

A more open healthcare marketplace within a state will help spur de facto nullification the federal program by providing an affordable alternative. As patients flock to these arrangements and others spurred by ingenuity and market forces, the old system will begin to crumble.

Passage of HB2240 takes a first step toward healthcare freedom in Arkansas, and creates a stepping stone to further action to nullify the onerous federal healthcare system. Arkansas residents could then take further steps to fully extricate themselves from national healthcare for good.

For more information on a plan to nullify the PPACA, click HERE.

Michael Maharrey [send him email] is the Communications Director for the Tenth Amendment Center, where this article first appeared. He proudly resides in the original home of the Principles of ’98 – Kentucky.See his blog archive here and his article archive here.He is the author of the book, Our Last Hope: Rediscovering the Lost Path to Liberty. You can visit his personal website at MichaelMaharrey.com and like him on Facebook HERE

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