Some Americans May Get $1,500 To Cover Health Bills. Will You Qualify?
A new Republican proposal in the Senate aims to give Americans up to $1,500 in health savings accounts as an alternative to extending Obamacare subsidies set to expire on December 31st.
USA Today shares that the plan, introduced by Sens. Bill Cassidy of Louisiana and Mike Crapo of Idaho, targets enrollees in lower-cost bronze or catastrophic Affordable Care Act plans who earn less than 700% of the federal poverty level—about $109,550 for a single person or $225,050 for a family of four.
Those aged 18 to 49 would receive $1,000 annually, while people 50 to 64 get $1,500, with funds restricted from covering abortions or gender transition procedures.
The payments come as ACA premium tax credits, enhanced during the pandemic, face expiration at the end of the year, potentially hiking costs for over 20 million enrollees. Critics note the amounts fall short of typical deductibles, leaving many still exposed to big bills.
"This might work for folks who are very healthy," said Sabrina Corlette, co-director of Georgetown University's Center on Health Insurance Reforms, to USA Today. "But for anybody with a chronic condition, this is not going to get you very far."
Some republicans argue that direct deposits empower patients over insurance companies, with estimates from the Congressional Budget Office suggesting double-digit premium drops for eligible plans. Supporters say it saves taxpayer money by bypassing insurers.
"It delivers the benefit directly to the patient, not to the insurance company, and it does it in a way that actually saves money to the taxpayer," said Senate Majority Leader John Thune, R-S.D., according to NPR.
Bronze and catastrophic options carry high deductibles of around $7,000, so the funds would help with out-of-pocket expenses before insurance kicks in fully. Eligibility excludes silver, gold or platinum plans, employer coverage, Medicare, Medicaid users, and some immigrants.
The Senate plans a procedural vote Thursday on this GOP bill alongside a Democratic push to extend subsidies for two to three years, part of a deal ending last month's government shutdown. The measure allocates up to $10 billion, amid broader fights over healthcare costs as 2026 premiums loom.
Stay tuned.
