Senate GOP Chairs Circulate Health Plan As Clock Ticks On ACA Subsidies

Two key Senate Republican chairmen are circulating the outline of a health care plan to Republican offices ahead of a crucial week that could decide the fate of enhanced Affordable Care Act subsidies, multiple sources tell Axios.

Why it matters: The plan from Finance Committee chair Mike Crapo (R-Idaho) and health committee chair Bill Cassidy (R-La.) does not extend the tax credits past their expiration at year’s end, instead providing funds to enrollees in health savings accounts, according to a summary obtained by Axios.

  • It’s not the only GOP plan that’s been floated in recent days as Republicans struggle to unite around health care policies.

What’s inside: Certain ACA enrollees earning less than 700% of the federal poverty level would receive $1,000 in an HSA if they’re 18 to 49 years old, and $1,500 if they’re 50 to 64, according to the outline distributed to Senate offices over the weekend.

  • It would also fund ACA cost-sharing reduction payments that would lower overall premiums but cut subsidies to some ACA enrollees.
  • Other provisions expand the availabilty of low-cost “catastrophic” health plans and cut Medicaid funding to states that provide coverage to undocumented immigrants.

The big picture: The Senate is due to vote on a three-year extension of the tax credits that Democrats have united around, which would lower premium payments for roughly 20 million ACA enrollees. That vote is expected to fail.

  • It’s not clear whether the Crapo-Cassidy proposal will also get a vote.
  • A Crapo spokesperson declined to comment. A Cassidy spokesperson did not respond to requests for comment.

 

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