As health insurance costs for 22 million Americans head for an end-of-the-year cliff, Senate Majority Leader John Thune, R-S.D., announced Tuesday that senators will vote Thursday on Republican legislation to channel federal funds to health savings accounts, a countermove to Democrats’ bill to extend expiring Affordable Care Act enhanced tax credits.
The bill, authored by the Republican chairmen of the Senate Finance and Health, Education, Labor and Pensions (HELP) Committees, would direct the Department of Health and Human Services to deposit federal funds into health savings accounts for people on the ACA’s bronze and catastrophic plans earning less than 700% the federal poverty level. Individuals aged 18 to 49 would receive $1,000 monthly and those between 50 and 64 years old would receive $1,500. Individuals would be prohibited from using these funds for abortions or gender transition care. The legislation would expire in 2028.
In many cases, these direct HSA payments would not be enough to cover next year’s premium increase.
Senate to vote on dueling bills to address skyrocketing premiums, neither expected to pass
