Senate Democrats blocked a Republican bill on Thursday that would create new federal subsidies to help Americans fund health insurance savings accounts.
The proposal was Senate Republicans' solution to address rising healthcare premiums in the new year. But the legislation failed to attract any Democratic Party support, falling short of the chamber's 60-vote threshold to advance.
The Senate will vote later on Thursday on a Democrat-led proposal to extend for three years Affordable Care Act subsidies set to expire on Dec. 31.
That vote is also expected to fail.
The Republican bill by Sen. Bill Cassidy, R-La., and Sen. Mike Crapo, R-Idaho, would send up to $1,500 to individuals earning less than 700% of the federal poverty level — about $110,000 for an individual or $225,000 for a family of four in 2025.
Those funds could not be used for abortion or gender-transition procedures and would require verification of beneficiaries' immigration or citizenship status — provisions Democrats reject.
The Democrat proposal on the subsidies under the ACA, popularly known as Obamacare, would extend COVID-era subsidies to keep insurance premiums from soaring for many. Those premiums could more than double in cost on average, according to health policy organization KFF.
Each party's leader in the Senate had panned the rival party's bill, with 60 votes needed to pass either measure in a Senate that Republicans control 53-47.
President Donald Trump has remained relatively mum on healthcare, although he ultimately embraced the Cassidy-Crapo approach.
The $1,500 payments in the Republican bill are meant to cover some of the out-of-pocket costs that people on lower-cost "Bronze" or "Catastrophic" Obamacare plans need to pay before their insurance kicks in.
However, it is far below the plans' deductibles, meaning that even after that payment, a patient would be on the hook for up to $7,500 in out-of-pocket medical expenses before their insurance would start to pay for part of their care.
Those costs can rack up quickly for people with lower-cost plans, with a visit to a U.S. emergency room costing between $1,000 and $3,000, while an ambulance ride can cost anywhere from $500 to over $3,500.
With 2026 congressional elections coming into focus, many Republicans are mindful about the prospect of stiff premium increases hitting every state, including many that backed Trump's 2024 reelection.
Sen. Josh Hawley, R-Mo., told reporters on Monday it would be unacceptable to close out the year without a healthcare fix. Even in a state Trump carried by 18 points, Hawley said constituents tell him, "We can't afford our premiums now, let alone if they would go up by 50% or 100%."
Congress' failure to send a solution to Trump would mean tens of millions of Americans being forced to make difficult spending decisions as voters cite affordability as their top worry.
"What are they going to cut back on?" Senate Minority Leader Chuck Schumer, D-N.Y., asked on Wednesday. "Their healthcare or their food or their ability to buy some Christmas presents for their kids?"
Insurance companies have warned customers of the rising premiums in the new year, and Democrats argue there isn't enough time to do anything but a clean extension of the tax credits.
Congress aims to leave town by the end of next week until Jan. 5.
A new Reuters/Ipsos poll found Americans back a healthcare subsidy continuation.
Some 51% of respondents — including three-quarters of Democrats and a third of Republicans — said they support extending the subsidies. Only 21% said they were opposed.
Other healthcare bills are swirling, including four from Senate Republicans this week. Schumer said Republicans' ideas "are loaded with poison pills, unworkable restrictions, and don't do anything to bring down premiums."
Meanwhile, some bipartisan House measures would temporarily extend the subsidy and add some restrictions, but House Republican leaders have rejected any extension.
Rep. Brian Fitzpatrick, R-Pa., is spearheading a bipartisan bill to extend the subsidy through 2027. He aims to garner enough support to circumvent leadership and force votes on the measure by the full House.
It is unclear what healthcare legislation House Speaker Mike Johnson, R-La., will unveil in time for House votes next week. He has given no sign of consulting Democrats, whom he blames for skyrocketing premiums.
"You cannot be an arsonist and a firefighter at the same time," Johnson said of Democrats.
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