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By Aliss Higham
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President Donald Trump has signaled his support for a Republican proposal that would deposit $1,000 to $1,500 checks into health care accounts for Americans.
Louisiana Senator Bill Cassidy, who leads the Senate health committee, and Idaho Senator Mike Crapo, head of the finance panel, unveiled their proposal to give certain Affordable Care Act (ACA) enrollees a one-time deposit of $1,000 for those aged 18 to 49 and $1,500 for those ages 50 to 64.
"I like the concept. I don't want to give the insurance companies any money," the president told reporters on board Air Force One on Tuesday. "They've been ripping off the public for years."
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Why It Matters
Health care costs for more than 20 million Americans are set to increase in January as Congress remains at an impasse over whether to renew ACA, also known as Obamacare, tax credits expiring on December 31. Democrats want to extend the subsidies for two or three years, while Republicans have introduced competing proposals.
Democrats are expected to secure a Senate vote this week on their plan to continue the enhanced ACA subsidies. The measure is likely to fail due to insufficient Republican backing, but the GOP agreed to allow the vote after Democrats made it a condition for ending last month’s record-breaking government shutdown.
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What To Know
A HSA is a tax-advantaged account used to pay for qualified medical expenses, typically paired with a high-deductible health plan. Contributions aren’t taxed, earnings grow tax-free, and withdrawals for eligible costs are also untaxed. Funds can roll over from year to year.
The proposal specifies that HSA dollars could not be used for abortion or gender transition care.
It would also continue ACA cost-sharing reduction payments, which would help lower overall premiums but reduce subsidies for some enrollees. Other measures would expand access to low-cost "catastrophic" plans and cut Medicaid funding to states that cover undocumented immigrants.
"Americans cannot afford health care. They need a serious solution that provides real relief to a broken system," a summary seen by Newsweek reads. "In line with President [Donald] Trump’s call, Republicans propose redirecting money going to insurance companies back to patients."
As lawmakers prepare to vote this week on the ACA subsidies, Republicans have submitted competing plans. Senator Bernie Moreno, an Ohio Republican, jointly introduced the Consumer Affordability and Responsibility Enhancement (CARE) Act, which would provide a temporary ACA Premium Tax Credit extension and give Americans a two-year path off the coronavirus-era credits.
What People Are Saying
President Trump told Politico this week: "I want to give the people better health insurance for less money,"
"The people will get the money and they’re going to buy the health insurance that they want," he added.
Republican Senate Majority Leader John Thune: "It actually does make health insurance premiums more affordable. It drives down, according to the Congressional Budget Office, premiums by double-digit levels. 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."
Josh Shultz, head of government affairs at Softheon, told Newsweek: "The bill does not replace Advance Premium Tax Credits with flat tax credits; instead, it adds a temporary HSA contribution of $1,000 for adults ages 18 to 49 and $1,500 for adults ages 50 to 64 for people up to 700 percent of the federal poverty level who are enrolled in bronze or catastrophic plans. These HSA amounts are flat by age and do not vary based on income or premium costs. As a result, they are smaller in value than the enhanced APTCs many households currently receive, and they are temporary and capped at $10 billion per year through 2027."
The Center for American Progress, a left-aligned think tank, said in an analysis of the Cassidy/Crapo proposal: "Senate Republicans’ alternative to extending the enhanced premium tax credits is not a real health care plan. It shifts financial risk onto families, fractures insurance markets, and revives low-value products that have failed consumers in the past. At a moment when millions of Americans face significant premium hikes, Congress must choose the only viable path—extending the enhanced premium tax credits."
Democrat House Minority Leader Hakeem Jeffries: "Democrats have been pressing our Republican colleagues for months to deal with the health care crisis that they have created. And in a matter of just a few weeks, tens of millions of Americans who live in every single state across this country are about to experience dramatically increased health care costs."
What Happens Next
Thune has confirmed a vote on the bill will take place on Thursday. The Senate was already set to vote Thursday on the Democrats' plan to extend the expiring subsidies.
Update 12/11/25, 09.40 a.m. ET: This article was updated with a statement from Josh Shultz.
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