WASHINGTON – As the U.S. careens to a health care cliff, Senate Republicans say they’ll offer a bill written by two key committee chairs as an alternative to extending billions of dollars in Affordable Care Act funds that are expiring this month.
Majority Leader John Thune, R-S.D., said the Senate will vote on a bill by Senate Finance Chair Mike Crapo, R-Idaho, and Senate HELP Chair Bill Cassidy, R-La., “side-by-side” to democratic legislation that would extend the enhanced ACA funds for three years, preventing sharp premium increases.
He stopped short of promising that all 53 Republicans would back the Republican bill, but it is indeed almost certain to fail either way, as it would take 60 votes to advance.
“Our members – and I can’t say 100%,but I think generally speaking,I would argue – are united behind the Crapo-Cassidy proposal,” Thune told reporters Tuesday after a Senate Republican lunch meeting where they discussed what to do.
Thune said the bill “is about patients, not insurance companies; and about lowering premiums, not increasing them, and about getting a better return for the federal taxpayer.”
The Crapo-Cassidy bill would allow the ACA tax credits to expire and instead approve new funds to boost health savings accounts, or HSAs, which Americans up to 700% of the poverty level can use to buy “bronze” or “catastrophic” plans, the lowest tiers of insurance available under the ACA. It would also create the option for more people to buy those cheaper and less comprehensive plans. And it would fund cost-sharing reduction payments.
Eligible adults under 50 years old would get $1,000 per year deposited into an HSA,and those 50 to 64 would get $1,500. The legislation blocks using the money for abortion or “gender transition procedures.”
Democrats and some health care policy experts say that is nowhere near enough. If Congress allows the ACA subsidies to expire at the end of this year, premiums will double, on average, for more than 20 million Americans who use them.
Sabrina Corlette, a Georgetown professor who specializes in health care policy, said the Republican bill amounts to “offering people a 1-foot rope to get out of a 10-foot hole.”
“The average deductible for a bronze plan is $7,500,double that for a family plan,” she said. “The HSA contribution doesn’t extend to kids under 18 and is only $1,000 for an adult under 50. There’s no adjustment for income, meaning this proposal wildly favors wealthier – and healthier – enrollees.”
Senate Minority Leader Chuck Schumer, D-N.Y., slammed the Republican bill as a “phony proposal” and a “nonstarter” that is “dead on arrival” in the chamber.
He said the Crapo-Cassidy bill promotes “junk insurance” and would raise costs for those who need health care.
“It is indeed junk insurance that puts the burden on people. We should call it what it is: misdirection, smoke and mirrors to cover up blocking the ACA tax credits that kee
Republicans Struggle to Find Consensus on ACA Funding as Premium Hikes Loom
As temporary funding for the Affordable Care Act (ACA) approaches its expiration, Republicans are grappling with internal divisions over how to address potential premium increases for millions of Americans.While acknowledging the issue, the party has failed to coalesce around a unified solution, and both Democratic and Republican proposals are expected to fall short of the 60 votes needed to advance in the Senate. https://www.rollcall.com/2024/03/14/republicans-struggle-to-unite-on-aca-funding-as-premium-hikes-loom/
Senator Thom Tillis (R-NC), who is retiring, emphasized the political risk for Republicans. “Look, the Democrats created the problem. We’ve got to solve it,or going into next year,we will own a problem that they created,” he stated. https://www.rollcall.com/2024/03/14/republicans-struggle-to-unite-on-aca-funding-as-premium-hikes-loom/
Several Republican proposals have been put forward, ranging from temporary extensions with conditions – such as stricter income eligibility requirements, premium payments, and new abortion restrictions – to broader frameworks.however, a meaningful number of GOP lawmakers prefer to let the funding expire as scheduled. https://www.rollcall.com/2024/03/14/republicans-struggle-to-unite-on-aca-funding-as-premium-hikes-loom/
Senator Mike Crapo (R-ID) argued against continuing direct funding to insurers, stating, “Giving billions of taxpayer dollars to insurers is not working to reduce health insurance premiums for patients. We need to give Americans more control over their own health care decisions.” He suggested focusing on measures like those included in the Working Families Tax Cuts Act to address rising healthcare costs. https://www.rollcall.com/2024/03/14/republicans-struggle-to-unite-on-aca-funding-as-premium-hikes-loom/
Health policy expert Larry Levitt of KFF (Kaiser Family Foundation) cautioned that Republican proposals involve tradeoffs. He explained that while healthier individuals might benefit from increased health savings account contributions, sicker individuals could face significant premium increases or high deductibles – possibly exceeding $7,000. Levitt also noted that the Republican plan would likely result in ACA enrollees seeing their out-of-pocket premiums doubling next year. https://www.rollcall.com/2024/03/14/republicans-struggle-to-unite-on-aca-funding-as-premium-hikes-loom/
The likelihood of premium increases is widely acknowledged by members of both parties. With both Democratic and Republican bills expected to fail in the Senate due to insufficient support, many anticipate the hikes will take effect. https://www.rollcall.com/2024/03/14/republicans-struggle-to-unite-on-aca-funding-as-premium-hikes-loom/
Senator lindsey Graham (R-SC) expressed skepticism about extending ACA funding, calling the program ineffective. He advocated for systemic changes to address prescription drug costs, stating, “I’d like to make drugs more affordable. So how do you do that? You change the system that makes them too high.”[https://wwwrollcallcom/2024/03/14/republicans-struggle-to-unite-on[https://wwwrollcallcom/2024/03/14/republicans-struggle-to-unite-on