WASHINGTON – Republican Sens. Mike Crapo and Bill Cassidy unveiled a bill that would deposit $1,000 to $1,500 into health savings accounts for qualifying customers. The proposal aims to be an alternative to the extension of the Affordable Care Act. The Affordable Care Act, also known as “Obamacare”, expires this month.
The Crapo-Cassidy bill is a response to a Democratic proposal to extend the ACA’s premium credits for another three years. Senate Majority Leader John Thune confirmed the Senate will vote on Thursday.
“Our members – and I can’t 100%, but I think for the most part, I would argue – are united behind the Crapo-Cassidy proposal,” Thune told reporters Tuesday.
The bill would help Americans up to 700% of the poverty level to buy “bronze” or “catastrophic” plans, the lowest tiers of insurance available under the ACA. The new funds added to HSAs would create the option for more people to purchase the cheaper, less comprehensive plans. The bill would additionally fund cost-sharing reduction payments.
Eligible recipients under 50 years old would get $1,000 per year. Those aged 50 to 64 would get $1,500. The legislation also blocks the use of abortion or “gender transition procedures”.
Health savings accounts allow consumers to save a portion of their paycheck before taxes. Customers can spend funds on qualifying expenses, such as doctor or hospital bills, or prescription drugs. The accounts, which are paired with high-deductible health insurance plans, allow customers to roll over balances from year to year, invest the funds, and use tax-free gains on eligible expenses.
Sabrina Corlette, a Georgetown professor specializing in health care policy, spoke with NBC News and offered insight into how the plan could affect consumers.
“The average deductible for a bronze plan is $7,500, double that for a family plan. 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,” Corlette said.
Congress expects the Democratic and Republican proposals to fail on the Senate floor this week. They require 60 votes to advance.
