In Washington, the debate is heating up over Affordable Care Act subsidies set to expire in just weeks.
Missouri U.S. Sen. Josh Hawley is pushing a new plan to make health care more affordable.
At a hearing in Washington on Wednesday, he said his bill would make health care tax-free.
“We did no taxes on tips, no taxes on overtime earlier this year,” said Hawley. “How about no taxes on health care? If you pay premiums, you ought to be able to deduct that from your taxes. If you have out of pocket medical expenses, you ought to be able to deduct every dollar off of your taxes.”
Hawley said the plan would include an upper limit to prevent wealthy Americans from gaming the system.
During the hearing, Sen. Hawley shared a letter he received from a Missouri resident about her recent medical costs.
“The health insurance coverage for myself and my two daughters are showing to be $1500 a month, enough to actually make a mortgage payment,” said Hawley. “I’m a small business owner and wondering how I’m going to be able to afford this. I mean, I think we should just be honest about what we’re facing here. This is a crisis.”
With Affordable Care Act subsidies set to expire January 1, the big question in Washington is what lawmakers will do next.
Sen. Hawley said if Congress doesn’t act soon, it could become a crisis for 24 million Americans.
“Maybe it’s time you all locked yourselves in a room and got to a solution here because it’s not going to be a solution in a couple of weeks to say, ‘Well, we just couldn’t get it done. We couldn’t think of anything.’ If that’s the attitude that ends up being taken in this body, millions of Americans are going to go without healthcare coverage,” he said.
Republicans are split between letting the enhanced subsidies expire or replacing them with options like health savings accounts, while Democrats are pushing for a clean extension without extra items or pet projects—some calling for one year, others for a longer fix.
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