White House proposes direct payments and new cost-sharing plan for Affordable Care Act exchange coverage

Yahoo
Yahoo
9h ago
The White House unveiled a health care proposal that would replace Affordable Care Act exchange premium tax credits with direct payments to eligible Americans and add a federally subsidized cost-sharing plan aimed at lowering premiums.
White House proposes direct payments and new cost-sharing plan for Affordable Care Act exchange coverage
A What happened
The White House proposed direct payments to Americans as a substitute for Affordable Care Act exchange premium tax credits that were passed in 2022 and expired in December. The proposal also includes a new federally subsidized cost-sharing plan intended to drive down premiums on Affordable Care Act exchange plans. The plan calls for a crackdown on pharmacy benefit managers, broader over-the-counter access for medicines, and a request for Congress to codify “most-favored nation” status used in trade agreements aimed at lowering drug prices. Centers for Medicare and Medicaid early data indicate 1.5 million fewer Americans are subscribed to Affordable Care Act exchange plans as of the latest open enrollment period.
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Key insights

  • 1

    White House position on subsidies: Karoline Leavitt said the proposal would stop sending insurance companies billions in taxpayer-funded subsidy payments and instead send money directly to eligible Americans to buy health insurance.

  • 2

    Cost impact claim: Karoline Leavitt promised that every American with health care in the United States will see lower costs as a result of the proposal.

  • 3

    Legislative dynamics: A lead Republican negotiator said he would not support a plan that lacked support from a majority of Senate Republicans.

Takeaways

The White House proposal would replace Affordable Care Act exchange premium tax credits with direct payments and add a new subsidized cost-sharing plan while also targeting pharmacy benefit managers and drug pricing policies.

Topics

World & Politics Elections Policy & Regulation Health & Medicine Healthcare Systems

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