"House Republicans Pass Controversial Health Care Bill Amid ACA Subsidy Showdown"
House Republicans Pass Health Care Bill Amidst Tensions Over ACA Subsidies
WASHINGTON, D.C. — In a significant legislative move, House Republicans on Wednesday passed a health care bill designed to lower costs and expand options for employer-provided health insurance. However, the passage was overshadowed by a revolt from moderate Republicans who aligned with Democrats to push for a vote on extending enhanced premium tax credits under the Affordable Care Act (ACA), which are not included in the GOP’s proposal.
Key Provisions of the GOP Health Care Bill
The newly passed bill, titled the Lower Health Care Premiums for All Americans Act, aims to facilitate access to association health plans. This provision allows small employers and self-employed individuals to band together across industries to purchase insurance that is less regulated than traditional plans. Currently, large employers can offer such coverage, and the Congressional Budget Office (CBO) estimates that this change could lead to approximately 700,000 additional individuals opting for association health plans annually, with about 200,000 of those being uninsured.
Energy and Commerce Chair Brett Guthrie (R-Ky.) emphasized the need for more options for small businesses, stating, “We’re looking at how do we help employers have lower premiums, not just people in the marketplace.”
Controversy Over ACA Subsidies
Despite the bill’s passage, tensions flared when four Republican representatives signed a Democratic-backed discharge petition to extend ACA premium tax credits for three years. This move came after Republican leadership declined to allow a vote on an amendment that would have included these credits in their health care bill. The absence of funding for health savings accounts, which are part of a separate Senate GOP proposal addressing the expiration of ACA subsidies, further fueled discontent among moderates.
Democrats have criticized the association health plans as “junk insurance,” arguing that they lack essential health benefits such as pediatric care, hospitalization, and maternity care. Representative Joe Neguse (D-Colo.) expressed concern during a House Rules Committee markup, stating, “That sounds to me like not a health care plan.”
Impact on ACA Marketplace Premiums
The GOP bill includes measures aimed at lowering some ACA marketplace premiums. However, the CBO projects that the actual costs for most enrollees may rise due to changes in how subsidies are calculated. The legislation also proposes to prevent states from regulating stop-loss insurance, which self-insured plans utilize to manage large claims.
Additionally, the bill allocates funding for cost-sharing reductions for low-income enrollees in the ACA marketplace. This funding is expected to lower gross premiums for benchmark silver plans by an average of 11%. However, because ACA subsidies are based on the cost of these silver plans, the reduction in costs could lead to a decrease in available tax credits for purchasing any plan, potentially increasing costs for individuals enrolled in gold and bronze plans.
Financial Implications
The CBO estimates that the bill will reduce the federal deficit by approximately $35.6 billion over the 2026-2035 period. However, it also anticipates a decrease in the number of insured individuals, estimating an average loss of 100,000 people annually.
Conclusion
As the health care debate continues in Congress, the passage of the GOP health care bill marks a pivotal moment in the ongoing discussion about health insurance reform. With the divide between Republican and Democratic priorities evident, the future of health care policy remains uncertain as lawmakers navigate the complexities of cost, coverage, and access.