Proposal Redirecting Subsidies to HSAs Surfaces

Senators Mike Crapo (R-ID) and Bill Cassidy (R-LA) have released the Health Care Freedom for Patients Act. According to a bill summary, the proposal would—among other things—direct the Department of Health and Human Services to deposit payments into Health Savings Accounts paired with bronze or catastrophic plans on the Exchange in 2026 and 2027. Eligible individuals earning less than 700 percent of the federal poverty level would receive $1,000 if aged 18 to 49 and $1,500 if aged 50-64. The proposal is one of several health care policies being discussed as insurance premium tax credits that were increased during the Covid-19 pandemic are set to revert to pre-pandemic levels at the end of the year.