WASHINGTON – House Republicans on Friday released the details of their health care plan ahead of planned votes next week, outlining proposals aimed at lowering costs without extending enhanced Affordable Care Act (ACA) subsidies.
The GOP plan focuses on alternative measures to reduce health care expenses. Key provisions include expanding association health plans, which allow employers to pool together to purchase coverage, and imposing new transparency requirements on pharmacy benefit managers to lower drug costs. The plan also funds ACA cost-sharing reduction payments, which would help reduce overall premiums while indirectly limiting some subsidies for enrollees. Additional measures are designed to make it easier for small businesses to offer health coverage to employees.
Republican leadership aides indicated a separate vote may take place on an amendment to extend ACA subsidies in some form, though the measure is expected to face resistance. Democrats continue to push for a “clean” extension of the subsidies without GOP-backed reforms, and many Republicans oppose any extension outright.
Notably, the plan does not include a Senate GOP proposal that would have provided $1,000 to $1,500 in health savings accounts as an alternative to extending subsidies. GOP aides suggested additional health proposals could reach the House floor early next year.
Even if the House passes the plan, it faces a high likelihood of failure in the Senate, where 60 votes and Democratic support would be required. Democrats maintain that extending ACA subsidies is necessary to prevent sharp increases in out-of-pocket premiums for millions of enrollees, while Republicans argue their plan would also benefit people with employer-sponsored insurance outside of ACA marketplaces.
While the enhanced ACA subsidies are still expected to expire at the end of the year, the upcoming votes will allow House Republicans to present their own approach to health care reform.