Senate Republicans plan to counter a Democratic-led vote on expiring Obamacare subsidies with a healthcare proposal of their own, marking a shift in strategy as the GOP debates how best to challenge Democrats on affordability.
“We will have an alternative that we will put up that reflects the views of the Republicans here in the United States Senate about how to make health insurance more affordable in this country, how to ensure that it’s not the insurance companies that are getting enriched but that it’s actually benefiting the patient, and how to make sure this is a good deal for American taxpayers,” Senate Majority Leader John Thune (R-SD) told reporters on Tuesday.
Thune was expected to skip a competing vote, with the party divided over the best legislation to present as an alternative, but ultimately decided to move ahead after discussing the vote at their daily conference lunch.
As part of a bipartisan deal last month to end the government shutdown, Thune agreed to let Democrats bring forward a bill to extend the premium credits offered under Obamacare. Senate Minority Leader Chuck Schumer (D-NY) ultimately settled on a three-year extension, but Republicans, meanwhile, plan to offer a proposal from Sens. Bill Cassidy (R-LA) and Mike Crapo (R-ID), the chairmen of the health and finance committees, respectively.
Rather than extend the pandemic-era subsidies, which Republicans say are rife with fraud and mask the underlying costs of healthcare, the Cassidy-Crapo legislation would provide money to qualifying recipients for health savings accounts. Only those with bronze and catastrophic marketplace insurance plans and those earning less than 700% of the poverty level would qualify. Those aged 18-49 would receive $1,000 annually for an HSA, and those 50-65 would receive $1,500.
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On Tuesday, Schumer condemned the plan as a “phony proposal” equivalent to “junk insurance” and insisted the Democratic extension was the “only realistic” avenue to preventing millions of people from facing out-of-pocket premium increases starting Jan. 1, 2026.
Neither healthcare bill is expected to garner the 60 votes needed to advance, but the legislation will offer both sides a messaging opportunity ahead of the midterm elections.
This story is developing and will be updated.