The GOP has struggled to unite around an alternative to the Democrats’ health care bill to fix the expiration of Affordable Care Act subsidies, which they shot down in the Senate this week, as the deadline to prevent a spike in premiums rapidly approaches. But many Republican plans involve some variant of replacing the subsidies with direct cash to people through health savings accounts they can use to pay cash for certain medical procedures, or else to meet their deductibles under “catastrophic” health care plans.
This idea is a nonstarter, Ellen Allen of West Virginians for Affordable Health Care told MS NOW’s Katy Tur on Friday afternoon.
“Congress yesterday voted on two bills,” said Tur. “One of them was an extension of the ACA subsidies for three more years. That was a Democrat-backed bill. The Republicans voted on a bill to deposit money directly into health savings accounts. I guess, like you’ve opened up for yourself, for you, because you’re — you’re over 50 years old. It would be $1,500 directly into that account. Wouldn’t be able to use it to pay for your premiums. But any other health care expense. Did you have a preference for one of those plans?”
“Yes,” said Allen. “I would like to see the three-year extension, and in that time, hopefully our lawmakers could get in a room and do some real work on addressing the affordability of health care. You know, look at slight neutral payments, look at where, what’s driving the increase in health care costs, which is really hospital costs. Look at price transparency. So that’s what we’d prefer.”
“And you know, I think the HSAs — I mean, I think that’s illustrative of just how out of touch our lawmakers are,” Allen continued. “Not only could that $1,500 one-time payment, that’s not even per month, it’s a one-time deposit into an HSA. And there are some tax benefits. But, you know, when people’s health insurance premium is $2,000 a month and upwards and again, the maximum out-of-pocket is pushing $10,000, you know, it’s almost laughable.”
“Again, that shows how out of touch they are,” she added. “You have to have a high amount of disposable income for the HSAs to really benefit your household.”
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