Senate Republicans Propose Replacing Obamacare Subsidies with Health Savings Accounts
Senate Republicans, led by Senators Cassidy and Crapo, have unveiled a plan to replace Obamacare subsidies with direct funding to health savings accounts (HSAs) for individuals rather than insurers. This framework counters Democratic efforts to extend Biden-era subsidies and seeks to abandon subsidies to insurers in favor of seeding HSAs.
Under the proposal, subsidies would pre-fund HSAs with $1,000 for individuals aged 18-49 and $1,500 for those aged 50-65 within households earning up to 700% of the poverty line. Eligible individuals would be required to maintain bronze or catastrophic exchange plans to access the pre-funded HSAs. The legislative framework draws support from President Trump and aligns with his earlier "big beautiful bill" package.
The legislation also includes provisions to protect the Hyde Amendment, ensuring no abortion funding is available through HSAs. Additionally, it imposes Medicaid restrictions aimed at reducing funding to states that cover undocumented immigrants, introducing citizenship verification requirements, and removing gender-transition services from essential health benefits.
Senate Majority Leader John Thune expressed that the plan could be workable, while Democrats, led by Chuck Schumer, oppose extending subsidies and remain skeptical of Republican proposals. Alongside the Cassidy-Crapo framework, other GOP plans from Senators Collins, Moreno, and Marshall have circulated, though the status of any vote this week remains uncertain.
The article notes that a vote on credits to extend Obamacare subsidies could occur soon amid ongoing debates about affordability and cost control in health care.
