South Carolina Rep. Mark Sanford is taking the lead on new legislation to repeal and replace Obamacare.

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In an interview on FOX Business Networkâs After the Bell, the House Freedom Caucus member said he hopes to get a new plan passed before the end of the year.

âThis is the companion bill to what Sen. Rand Paul has introduced on the Senate side,â Rep. Sanford said.

Sen. Paul, a Republican from Kentucky, has introduced an Obamacare replacement plan that eliminates the mandate and provides a tax credit of up to $5,000 per person to be used as part of a health savings account.

Sanford said having people spend their own money can impact healthcare pricing and under Obamacare, people were not paying ahead of time based on anticipated risk.

âWe are fundamentally changing the way you prepare for the notion of a preexisting condition and pay for it,â he said.

Sanford said the current system doesnât offer âtrue insurance,â which doesnât provide money into a plan that prepares you for an unwarranted health risk.

âInstead of people paying it [insurance] for years and then sadly, tragically they get cancer, itâs the âwait until they get cancerâ to go on insurance so you donât have the power of compounding,â he said.

The House Freedom Caucus members are pushing for a swift repeal of the Affordable Care Act with almost no support from Democrats. Sanford said there is no incentive for Democrats to help the GOP come up with a suitable plan, and allowing Obamacare to fail will hurt a lot of people in the process.

âI think Republicans are right to say âletâs come up with a plan that begins to address this,â though it may be painful politically,â Sanford said.