Subsidy Deadline Approaches, Senate Health Care Bill Collapses

The Senate failed to pass the Republican-led health care bill as the deadline to extend Obamacare subsidies fast approaches. The Health Care Freedom for Patients Act was defeated in a 51-48 vote after one Republican, Sen. Rand Paul of Kentucky, joined 47 Democrats to vote against it. While 51 Republicans supported the legislation, it ultimately failed due to the 60-vote threshold requirement. Notably, Republican Sen. Steve Daines of Montana was not present for the vote.

The bill would have allowed certain Obamacare subsidies to lapse and directed funds toward individual health savings accounts while fostering competition and broadening health care options. However, these subsidies from former President Barack Obama’s landmark health care bill, known as the Affordable Care Act, are set to expire at year-end. Notably, these ACA subsidies were a primary reason Senate Democrats initiated a government shutdown in October — the longest in U.S. history.

Despite facilitating the longest government shutdown in U.S. history, Senate Democrats have not struck a deal with Republicans to address health care.

In an effort to resolve the issue, Republican Sen. Rick Scott of Florida introduced the More Affordable Care Act, which would redirect federal subsidies to HSA-style accounts called Trump Health Freedom Accounts and establish the Health Freedom Waiver Program to broaden health care options for states. A companion bill was also introduced in the House by Republican Study Committee Chairman August Pfluger, though no vote has been scheduled on either measure.