Senate Prepares for Key Vote on ACA Subsidies and GOP Proposal

John​‍​‌‍​‍‌​‍​‌‍​‍‌ Thune, Senate Majority Leader (R-S.D.), announced on Tuesday that the Senate has planned to carry out a significant vote on Thursday. This vote will involve voting on a Republican plan to modify health insurance subsidies under the Affordable Care Act (ACA). A senate member will have the opportunity to vote either for continuing the present subsidies or for a GOP plan focusing on health savings accounts by this ballot.

The Senate is going to vote on Thursday on a Democratic plan for the ACA to continue the enhanced health insurance subsidies for another three years since these are going to expire in January. In order to give a counteroffer to the Republicans, Thune's announcement offers another alternative proposal by GOP senators.

Thune​‍​‌‍​‍‌​‍​‌‍​‍‌ disclosed that it would be the Cassidy-Crapo proposal, a plan by Senators Bill Cassidy (R-La.) and Mike Crapo (R-Idaho), that the Republicans would bring up for a vote. He emphasized that the policy was supported by the majority of Senate Republicans and that the move would lead to a reduction in premiums as well as save the federal government nearly $30 ​‍​‌‍​‍‌​‍​‌‍​‍‌billion.

The main features of a GOP Proposal: The intent of the Cassidy-Crapo plan is to discontinue the currently available enhanced premium subsidies and instead to provide the persons with health savings accounts (HSAs) which cover their costs with payments from the federal government. A number of opponents argue that this proposal would actually result in more affordable premiums because it drives down to low double-digit figures, according to the Congressional Budget Office, the costs of which one of the major reasons for implement the plan. Those who advocate for this measure argue the plan puts money directly into the hands of individuals who are patients rather than insurance companies and it lowers government spending by cutting the part of the taxpayers' money that is used to pay for health coverage.

They support that plan benefits individual patients directly rather than insurance companies and reduces taxpayer spending by the same logic.

Thune expressed his approval in the following words, “It actually achieves the goal of making health insurance premiums more affordable. One of the double-digit levels brings about a reduction in premiums and thus patients receive the benefits which are not channeled through insurance companies but directly to them.”

The big decision in the next election results from the negotiations taking place between the Senate Republicans. A handful of GOP senators, like Susan Collins (R-Maine), and Dan Sullivan (R-Alaska), who are likely to be up for re-election next year, have declared their willingness to cast a ballot in favor of a Republican alternative along with the Democratic bill.

The disagreement among Republicans is due to them having different explanations for the issue of how healthcare costs should be reduced.

The Cassidy-Crapo Plan: Changes the ACA subsidies into HSAs providing them to those who have bought their health insurance via the marketplace.

Rick Scott's Plan: Prolongs the expiration of the existing subsidies and instead provides contributions to "Trump Health Freedom Accounts," which are intended to be available to a wide range of people.

The main proposition of senators Collins and Bernie Moreno (R-Ohio) is to extend the subsidies for two more years with conditions such as income limits and $25 minimum premium that would ensure "skin in the game." Other senator's proposals such as Roger Marshall (R-Kan.) and Jon Husted (R-Ohio) also support the idea of confronting premium hikes by coming up with innovative solutions.

Thune has not determined yet if he would go ahead with a Republican health care plan vote due to the dissension in his conference. The plan of Cassidy-Crapo was the only one on the Senate calendar on Tuesday morning, so it was the only choice for a procedural vote on Thursday.

The result of such a voting can change health insurance policies' future and also have an impact on the direction that the Republican Party would take to reform ACA subsidies. If Congress does not take any action, premiums, in this case, will most certainly rise significantly, and that is the reason why both parties have so much at stake.

If the Republican plan receives enough support, it could be a major alternative to the Democratic extension most likely for those Republicans who are vulnerable and are to be re-elected in the near future. On a different note, the failure of any of the Republican proposals to pass might result in the continued reliance on the Democratic extension or further legislative negotiations.

Thursday’s health care vote in the Senate will reveal how much the two sides can cooperate and how united the party is in the face of the issue of rising health insurance costs. As the argument proceeds, there are millions of people who are depending on a solution that will not only was their premiums but will also ease their way to affordable health ​‍​‌‍​‍‌​‍​‌‍​‍‌coverage.