U.S. Senate Finance Committee Chairman Mike Crapo (R-Idaho) has criticized the passage of a Democratic proposal to extend enhanced Obamacare subsidies, arguing that it will increase costs for American families and fails to address ongoing issues in the health care system.
Crapo, together with Senator Bill Cassidy (R-Louisiana), introduced the Health Care Freedom for Patients Act as an alternative. The bill aimed to establish pre-funded, patient-driven health savings accounts (HSAs) to help cover out-of-pocket expenses and reduce benchmark premiums by 11 percent. According to Crapo, this approach would give families more control over their health care choices.
Democrats blocked the Republican measure in a 51-48 vote, preventing it from advancing in the Senate.
“Today was a missed opportunity to lay the groundwork for real health care reforms,” Crapo said. “Republicans put forward a fiscally responsible proposal to reduce premiums, save taxpayers’ money and give Americans control over their health care. Meanwhile, Democrats insisted on extending the same policies that have led to rampant fraud and higher premiums. We cannot continue to throw good money after bad policy and paper over the cracks in our health care system. It is time to give Americans more control over their health care choices and make quality health care more affordable.”
On the Senate floor before the vote, Crapo argued against what he called a “clean” extension of Obamacare subsidies by Democrats:
“They call their plan a ‘clean’ extension. A three-year extension of this program with no reforms, costing hardworking families $83 billion, with tens of billions going to big insurance companies and fraudsters is anything but ‘clean.’
“The Government Accountability Office recently uncovered how embarrassingly easy it is to game the Obamacare subsidy system, with the Wall Street Journal calling it a ‘Mecca for Fraud.’ This year, there were over six million improper enrollments, costing $27 billion.
“Even the Washington Post recognized that ‘Obamacare subsidies make it too easy to scam the system.’”
Crapo highlighted that his bill would provide HSAs for those enrolled in qualified Obamacare bronze and catastrophic plans while ensuring low-income Americans would still receive subsidies through existing premium tax credits.
“Instead of the Minority Leader’s $83 billion dollar extension, which would do nothing to reduce fraud and would keep driving premiums higher, Senator Cassidy and I have offered a fiscally responsible proposal that will reduce premiums, save taxpayers’ money and give Americans control over their health care.
“Our bill provides pre-funded, patient-driven health savings accounts for Americans enrolled in qualified Obamacare bronze and catastrophic plans. Importantly, low-income Americans will still receive subsidies for those plans through the permanent portion of the premium tax credits.
“Americans who choose this option will have both insurance coverage and help paying for their remaining out-of-pocket costs, all without giving insurers a reason to enroll them in plans without their knowledge, as has occurred for years.
“Our bill also fixes an error in the original design of Obamacare by funding the cost-sharing reductions it mandated, reducing benchmark premiums by 11 percent.”
Crapo emphasized ongoing bipartisan efforts on other reforms such as pharmacy benefit manager regulation alongside Senator Wyden.
He concluded by stating: “The choice before us is clear:
We can continue with business as usual and extend the same policy that has brought our health care system to the point where every member of this body admits that it is broken, or –
We can try something different. We can change the incentives Obamacare gives insurers to drive premiums higher and put our confidence in Americans to make the best decisions about their own health care. If we fall off the Democrat-created subsidy cliff, it will not be because we had no other choice.”
