U.S. President Donald Trump on Monday said that government money should be given directly to people instead of health insurance companies. His comments come as Democrats are trying to extend Affordable Care Act (Obamacare) subsidies for another three years.
These subsidies, created during COVID-19 to lower insurance premiums, will end this year unless Congress acts. Up to 24 million people could be affected. A recent KFF poll found that one in four Obamacare users may drop their health coverage in 2026 if the subsidies end and premiums double.
Democrats in the Senate will vote on the extension on Thursday, but the plan is unlikely to pass because it lacks enough Republican support.
Meanwhile, Republican Senators Bill Cassidy and Mike Crapo have introduced their own plan. Their proposal would give up to $1,500 directly into health savings accounts for people earning below 700% of the federal poverty level. The money could not be used for abortion or gender-transition care.
They say their plan would also help lower insurance premiums by 11% in 2027 and reduce federal Medicaid spending.
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