Two Senate Republican chairs are advancing an alternative healthcare proposal that would eliminate Affordable Care Act subsidies and instead channel government assistance directly to consumers through health savings accounts, Axios reported Monday.
The proposal from Senate Health Committee Chair Bill Cassidy, R-La., and Finance Chair Mike Crapo, R-Idaho, would allow current Obamacare subsidies to expire at year’s end and be replaced by “pre-funded, patient-driven accounts.”
Additionally, the chairs said their plan would lower insurance premiums by 11% by 2027 and beyond via “cost-sharing reduction payments.”
The Cassidy-Crapo plan stands in stark contrast to a competing proposal from Republican Sens. Bernie Moreno, R-Ohio, and Susan Collins, R-Maine, who reportedly are pitching a plan to extend Obamacare subsidies for two years with income caps and other reforms.
Under the Cassidy-Crapo plan, circulated to Senate offices over the weekend, ACA enrollees with incomes below 700% of the federal poverty level would receive a $1,000 HSA contribution if they’re ages 18-49, and $1,500 if they’re 50-64.
The plan is also heavy on reform, a rallying cry among congressional Republicans.
It would reduce federal Medicaid funding to states that provide coverage to illegals; require states to verify citizenship or eligible immigration status prior to Medicaid coverage; and prohibit the use of federal Medicaid funds for gender transition services and would exclude them as an “essential health benefit” for plans sold on the Obamacare exchanges.
The Moreno-Collins proposal would keep the enhanced tax credits in place for two years but tighten eligibility by restoring an income cap and phasing out benefits for higher earners. Households would receive the full tax credit up to 400% of the federal poverty level.
Senate Democrats, meanwhile, are set to force a vote this week on legislation extending the tax credits for three years. The vote was promised by Senate Majority Leader John Thune, R-S.D., during talks that ended a lengthy government shutdown.
But the Democrat bill is expected to fall well short of the 60 votes needed to advance.
It's unclear whether the Cassidy-Crapo proposal will get a vote.
Mark Swanson ✉
Mark Swanson, a Newsmax writer and editor, has nearly three decades of experience covering news, culture and politics.
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