House Republicans Propose New Healthcare Legislation Following Senate Stalls

House Republicans Propose New Healthcare Legislation Following Senate Stalls Following the Senate's recent inability to advance bills aimed at addressing healthcare costs, House Republicans introduced new legislative proposals on Friday. This new legislation does not include an extension of enhanced tax subsidies for the Affordable Care Act (ACA), which are scheduled to expire at the end of the year. The expiration of these subsidies would result in increased premiums for millions of Americans who obtain health insurance through the ACA marketplace. Key Provisions of the House GOP Proposal The Republican proposal focuses on several areas: * Small Business Insurance: It would allow small businesses to collaborate in purchasing insurance plans for their employees. * Pharmacy Benefit Managers (PBMs): New requirements would be imposed on PBMs with the stated goal of reducing drug costs. * Cost-Sharing Reductions: Starting in 2027, federal cost-sharing reduction payments are intended to lower premiums for some low-income Americans. However, health plans that provide abortion coverage would be excluded from these payments. Legislative Timeline and Party Reactions Congress faces a tight schedule, with the House having four legislative days before its recess begins on December 19, and the Senate's recess starting on December 20. House Speaker Mike Johnson indicated that a vote on the proposed package is expected next week. Johnson stated that House Republicans are addressing the core factors contributing to healthcare costs to ensure affordable care, enhance access and choice, and strengthen the nation's healthcare system. Democratic House Minority Leader Hakeem Jeffries criticized the proposal on Saturday, noting its failure to extend the ACA tax credits and describing it as "inadequate and problematic." Prior Senate Efforts and Broader Perspectives Earlier in the week, a Democratic-led proposal in the Senate to extend ACA plan subsidies for three years did not pass, despite attracting some Republican support. A separate plan backed by Senate Republicans also failed to secure the necessary 60 votes to clear the chamber. Former President Trump has advocated for allocating funds directly to individuals for healthcare expenses instead of using tax credits for ACA plans. He stated a preference for "billions of dollars" to go to people to "buy themselves great health care," rather than to insurance companies. The Senate GOP's previous proposal included a provision for up to $1,500 in health savings accounts for Americans earning less than 700% of the federal poverty level, intended for use with high-deductible insurance plans. According to an analysis by KFF, such plans typically have an average deductible of approximately $7,000. This specific health savings account language is not included in the current House Republican proposal. Democrats had opposed the Senate GOP bill, citing concerns regarding its impact on premium affordability and objecting to restrictions on abortion and gender-affirming care. Some Republicans within the House have expressed concerns about the political implications of ending ACA subsidies and are exploring avenues to extend them, even against the objections of party leadership.