The U.S. Senate will vote on two different healthcare bills on Thursday — one Democrat-backed bill and one supported by Republicans.
The bill from Democrats seeks to extend COVID-era Obamacare subsidies for another three years, which will cost taxpayers tens of billions of dollars. Notably, the subsidies were set to expire this month, a deadline set by Democrats.
The other bill, backed by Republicans, lets the Obamacare subsidies expire. Instead, it directly gives some Americans about $1,000-1,500 into health savings accounts.
Notably, neither bill is expected to pass the Senate.
Extended Obamacare Tax Credits
Democrats say the Obamacare subsidies, which are technically tax credits, need to be extended again. They started back in 2021 and were only supposed to be in place for two years, but Democrats extended them until the end of this year.
The extension, called the “Lower Health Care Costs Act,” is expected to cost taxpayers $83 billion, while wait times and healthcare costs continue to skyrocket for most Americans.
Democrats, who are reportedly trying to keep healthcare a main issue for the coming midterm elections, say tens of millions of Americans will see their healthcare plans double if the subsidies are not extended once again.
Republicans, however, say that’s not true.
“Twenty-two million of the 24 million people will still get their subsidies, the original Obamacare subsidies, which subsidize the insurance at 91% of the premiums,” Senator Ron Johnson (R-WI) told The Daily Wire last month. “So their premiums won’t double.”
“Now, you can argue that people that went from paying a negligible amount to zero premiums, they’re going to have to pay another negligible amount,” Johnson said. “But again, going from zero to a negligible amount is an infinite increase. You can’t put that as ‘doubling premiums.’”
“The people we’re talking about, the 1.6 million people whose subsidies completely go away — I’m willing to work with Democrats on that,” the senator added. “But again, it’s simply false to say that most people are gonna see their premiums double and triple. Now, the gross premium has more than doubled and tripled since Obamacare, but that’s because of Obamacare.”
The GOP also argues that Obamacare, and these subsidies specifically, are creating massive fraud — another burden on the American taxpayer.
“Health Care Freedom for Patients Act of 2025”
The GOP-backed bill, called the Health Care Freedom for Patients Act of 2025, lets the Obamacare subsidies expire on the timeline Democrats set. It offers Americans direct payments to help cover healthcare costs — an idea floated by President Donald Trump last month.
The health savings accounts created by the bill are limited for Americans making up to 700% of the federal poverty limit. Funds will range from $1,000 to $1,500 for 2026 and 2027.
While accusing Democrats of papering over the issues of Obamacare and enriching insurance companies, the GOP says its plan will directly help the American people.
Like the Democrats’ plan to extend Obamacare subsidies, the GOP plan is not expected to pass the Senate, despite the GOP majority. Some Republicans are still unsure about how to handle the expiring subsidies, viewing the issue as a political lightning rod, especially ahead of the midterms. Moreover, the GOP doesn’t seem to have any support among Democrats, and the bill would need support from a handful of them to pass.
Other Plans In The Works
Republicans are still working on other healthcare plans, hoping to craft something that will garner enough votes to land on President Trump’s desk.
One plan, led by Republican Study Committee Chairman August Pfluger (R-TX) and Senator Rick Scott (R-FL), is called the More Affordable Care Act (MACA).
The plan would create HSA-style Trump Health Freedom Accounts, which would notably restrict use for abortion health plans, abortion services, transgender surgeries, or gender transition procedures — something most conservatives view as vital.
MACA would also create a new state waiver program within Obamacare to allow competition and drive down prices. It would allow health insurance plans to be sold across state lines and expand the availability of health insurance plans within existing Obamacare exchanges.
Another plan is being proposed by Sen. Rand Paul (R-KY). Paul says his plan is not a “watered-down version” of Obamacare, like current GOP options.
“My plan actually fixes the system. It doesn’t cost taxpayers a dime, and it finally frees Americans to buy insurance across state lines through real co-ops. No bureaucracy, no bloated mandates – just competition, choice, and lower costs,” Paul said this week.
“Basically I would legalize the ability to buy insurance across state lines, through a co-op,” the senator said.
