U.S. News
House GOP Eyes New Path On Health Costs
Clear Facts
- House Republican leaders are building consensus on a plan to lower healthcare costs, expected to be revealed this month.
- Expanding Health Savings Accounts and reforming pharmacy benefit managers are key priorities for GOP lawmakers.
- Republicans favor increasing health insurance options and oppose extending enhanced Obamacare tax credits.
House Republicans are working to introduce a plan aimed at reducing surging healthcare costs across the country. Party leaders, including Speaker Mike Johnson and Majority Leader Steve Scalise, are consulting with various Republican groups to shape the final proposal.
GOP legislators consistently mention broadening Health Savings Accounts (HSAs), which currently benefit those with high-deductible plans, as a central reform. HSAs allow pre-tax savings for medical expenses, but lawmakers want all Americans with health insurance to gain access.
“Health savings accounts (HSAs) need to be expanded to as many individual healthcare recipients or premium payers in our country. Like right now, it’s the people that can access a health savings account, usually high-deductible, catastrophic coverage, those types of plans,” said House GOP Conference Vice Chair Blake Moore, R-Utah.
“They’re really well-used, but they need to be extended so basically all Americans on some type of health insurance policy can use health savings accounts.”
Republicans are also focused on reforming pharmacy benefit managers (PBMs), intermediaries between pharmaceutical companies and insurers, who are often criticized for driving up drug prices.
“I had my own pharmacies for over 32 years, and I can tell you, bringing prescription drug prices down is as simple as is addressing the middleman, the PBMs that are causing increases and causing prices to stay high for drugs,” Rep. Buddy Carter, R-Ga., said.
“That is one of the quickest and the easiest ways to bring prescription drug prices down, by reeling them in.”
Most Republican lawmakers agree on the need for a more competitive insurance market, giving Americans greater choices beyond government programs. Few favor repealing and replacing Obamacare, but many believe it has failed to lower prices and expand options.
“We see that Obamacare has now been around for almost 14 years, and it’s more expensive, and we have less choices than ever before. So Obamacare is not working, and I think that’s what we need to focus on,” said Rep. Marlin Stutzman, R-Ind.
“There’s plans already being put in place by the administration, by groups in the Republican Party, that want to focus on making sure healthcare is affordable, and it’s available and that people can make choices rather than being told who which doctor they have to go to.”
Republicans are not in favor of extending temporary tax credits for Obamacare, an idea supported primarily by Democrats. Some GOP members stress the urgency of addressing premium hikes expected in the coming year if Congress fails to act.
“All Americans are getting a health insurance premium increase this coming year of 20 to 30%. Even if we did what they wanted us to do — and I’m not saying that we won’t, because the White House might have a plan to continue it, the Senate might have a plan. Mike Johnson might do something, but even if we do that, you realize that it’s only gonna cover about 4% of that 20 to 30% increase. It’s not solving the problem,” Emmer said.
Concerns about access to doctors and hospitals, especially in rural America, are also part of the Republican discussion.
“I’ve got to make sure that what we do is right for that independent practicing physician, that small-town pharmacist. And so we have to make sure we’re taking care of rural America with what we do, as well as the hospitals that we would all go to if we had, you know, cancer treatment or something like that,” said Rep. Austin Scott, R-Ga.
House Republicans believe bipartisan legislation could progress quickly if Democratic leaders avoid partisan stalling tactics.
“There’s a lot of good bipartisan healthcare policy legislation that can pass imminently and very soon, unless Democrats play the game of, ‘Oh, I don’t want it to look like the Republicans are being productive on healthcare, so we’re gonna stymie this, even though I agree with the policy,’” Moore said.
Stay informed as details of the GOP’s healthcare reform roadmap emerge this month.
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