A Republican proposal in the Senate that would route up to $1,500 directly into Americans’ health savings accounts has quickly earned President Trump’s enthusiastic backing.
Speaking with reporters aboard Air Force One, the president made clear why the idea appeals to him. “I like the concept. I don’t want to give the insurance companies any money,” he said, blasting the industry for its practices. “They’ve been ripping off the public for years,” he continued, calling Obamacare “a scam to make the insurance companies rich. … Billions and billions of dollars is paid directly to insurance companies.”
The legislation had been expected to reach the Senate floor this week. Its aim is to relieve the financial pressure on roughly 24 million people insured under Obamacare, many of whom are facing higher out-of-pocket costs.
A key feature of the bill is a direct cash allotment into health savings accounts: $1,000 for eligible Affordable Care Act enrollees aged 18 to 49, and $1,500 for those aged 50 to 64.
Eligibility hinges on several factors, including income. Individuals and families must earn no more than 700% of the federal poverty level to receive the benefit — meaning a single enrollee could qualify with income up to $109,550, and a family of four could qualify with income as high as $225,050.
In addition, only those enrolled in bronze-level plans — about one-third of ACA participants — or catastrophic plans are included. These plans come with steep deductibles but differ in premium costs: bronze plans can require paying up to 40%, while catastrophic plans generally carry minimal premiums.
The proposal sets aside as much as $10 billion for these health savings account payments. It explicitly bars any of the funds from being used on abortions or gender-reassignment procedures. Certain legally present immigrants may also qualify.
Notably, those on silver, gold, or platinum Obamacare plans — which offer higher coverage in exchange for higher premiums — do not qualify for the HSA deposits. The same exclusion applies to people insured through their employers, as well as those covered by Medicare or Medicaid.
Sen. Bill Cassidy of Louisiana, one of the bill’s architects, praised the president’s stance. “I absolutely agree with President Trump that we need to redirect subsidies from insurance companies and give patients the power,” he told The Post. He added, “Republicans want real solutions that actually make health care affordable and put money in families’ pockets. I applaud the President for his leadership on this issue.” Cassidy teamed up with Senate Finance Chairman Mike Crapo of Idaho to introduce the bill.
The Senate is expected to weigh this proposal Thursday alongside an $83 billion Democratic measure that would extend every Obamacare subsidy for another three years — a vote Democrats secured through last month’s shutdown-ending agreement.
The debate lands at a time when Trump is shifting his economic messaging ahead of the 2026 midterms, unveiling a slate of populist policies that include possible $2,000 tariff rebate checks and $1,000 Trump savings accounts for children.
Voters, meanwhile, continue to feel the squeeze of the roughly 20% cumulative inflation tied to Joe Biden’s term. Prices increased another 3% over the past year, according to the newest Bureau of Labor Statistics release.
The White House has rejected claims that tariffs are fueling higher consumer prices. Officials point instead to historic private-sector investment in U.S. manufacturing and a rebalancing of global trade agreements that they say benefits American workers.
At a Pennsylvania event earlier the same day, Trump underlined his economic message once more, declaring he has “no higher priority than making America affordable again.” He also defended his trade policies, telling attendees, “If we didn’t have tariffs, you would have no steel. We wouldn’t have one steel mill anywhere in the United States, and that would be really bad for national security.”
Addressing energy costs, he reminded the crowd, “When energy comes down, your other prices come down.”
He then highlighted tax relief already set to take effect. “We’re also putting thousands of dollars in the pockets of hard-working Pennsylvanians with the largest tax cuts in American history: That’s no tax on tips, no tax on overtime, no tax on Social Security for our great seniors,” he said. “And all of that kicks in on Jan. 1.”
The administration also framed the health-care legislation as part of its broader effort to fight runaway medical costs. White House spokesman Kush Desai criticized the opposing party’s approach. “The current system is not working to deliver health care at reasonable prices for everyday Americans. Democrats’ push to maintain these high prices by giving more money to insurance companies is not a real solution for President Trump,” he said.
Desai noted the president’s focus on negotiating with drug manufacturers and cracking down on systemic waste. “The President has instead focused on lowering prescription drug costs by hammering out deals with pharmaceutical companies, as well as taking on waste, fraud and abuse in the system to deliver results for patients, and will continue to deliver policy solutions that lower costs in the healthcare market for the American people.”
{Matzav.com}
