Summary
President Trump plans to propose a new initiative that would extend Affordable Care Act (ACA) subsidies for two years but with new eligibility limits. This comes as ACA tax credits are set to expire, and there is concern about rising health care costs.
Key Facts
- President Trump will propose a plan to extend ACA tax credits for two more years.
- The proposal includes new income limits for eligibility for the tax credits.
- The plan would require those receiving the credits to make a minimum premium payment, removing options with no premiums.
- It encourages buying lower-premium health plans through the ACA exchange.
- For people who switch to cheaper plans, savings would go into health savings accounts provided by taxpayer dollars.
- There is ongoing debate about using these subsidies for elective abortions, with the Hyde Amendment being a point of controversy.
- Treasury Secretary Scott Bessent mentioned on NBC's "Meet the Press" that an announcement on health care costs is expected soon.
- Sens. Bill Cassidy and Rick Scott have suggested alternative ACA subsidy plans using tax-privileged savings accounts.
