Republican Study Committee Chairman August Pfluger (R-TX), has revealed a new plan to reduce Obamacare and provide Americans with the option to open new health savings accounts named after President Donald Trump. The legislation being filed is called “The More Affordable Care Act.”
In the new plan, states would be given the opportunity to opt out of major parts of Obamacare, known as the Affordable Care Act, so long as other systems are in place that would prevent premiums from going up for high-risk patient pools. “Waiver states” could then choose between having their own healthcare exchange platforms or oversee ones run by private companies. Republicans make the case this will allow more choice in the marketplace alongside the federal government’s options.
One of the genius parts of the proposed plan is that federal dollars that are currently being routed toward lowering insurance premiums in those states would then be placed in personal HSAs for those who are eligible called “Trump Health Freedom Accounts.” The More Affordable Care Act would also enable Americans to purchase healthcare plans across state lines, increasing competition and naturally driving down the costs of insurance over time.
According to Fox News, any healthcare program run in a “waiver state” will be required to be made easily available to folks located in other “waiver states.” The overall goal of the new bill is to increase competition for individuals where the federal option is currently the only choice available. Some may wonder why the GOP is not seeking to get rid of Obamacare altogether. Republicans have stated that doing so, at this point, might be impossible, thus this new plan is the best alternative.
Pfluger’s proposal comes about as insurance premiums are skyrocketing, which could result in millions of Americans paying significantly higher for insurance coverage beginning in 2026. While many factors are at play, the biggest one is the Obamacare subsidies that were enhanced during the COVID pandemic, but are set to expire at the end of the year. These subsidies were the main sticking point that led to the historically lengthy government shutdown during the fall.
The vast majority of Republicans are against extending the enhancements, making the case that the program only led to increased healthcare costs while not addressing the underlying problem. Republican leaders in the House are currently putting together a healthcare package, which Speaker Mike Johnson stated could come up for a vote at the end of December. At this time, it’s not been made clear if Pfluger’s legislation will be included in that package.
Fox News then revealed that a source close to the situation has stated they are anticipating “significant interest” from other House Republicans once the bill is introduced on Monday. Pfluger told the outlet, “By establishing Health Freedom Accounts, we’re putting healthcare decisions back where they belong: in the hands of American families, not Washington bureaucrats. The American people deserve better than throwing more money at a failed system, and we’re delivering the commonsense solutions they expect.”
"*" indicates required fields
Pfluger’s bill is the House counterpart to legislation previously introduced by Sen. Rick Scott (R-FL). Scott spoke with Fox, saying, “We don’t have to replace Obamacare, we keep exchanges, we keep protections for preexisting conditions – but we can add options for families, allowing them to shop across state lines, increasing transparency in health care, and giving any financial support to them directly through HSA-style Trump Health Freedom Accounts, so families can choose the care that fits their needs.”