Senate Republicans float direct health payments to end shutdown stalemate: WSJ

[Senate Health Committee Hears Testimony From Fired CDC Director Susan Monarez]
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Senate Republicans have offered a new proposal aimed at breaking the monthlong government shutdown, suggesting that some healthcare funds go directly to households instead of financing another year of expanded Affordable Care Act (ACA) subsidies, The Wall Street Journal reported Sunday.

The GOP plan, led by Sen. Bill Cassidy (R., La.), would steer federal money into flexible-spending or health savings accounts that Americans could use to pay deductibles and other medical costs. Cassidy said on the Senate floor that lawmakers should look for creative compromises that give patients more control over their healthcare dollars.

The idea marks a shift for Republicans, who had insisted there would be no negotiations until Democrats agreed to reopen the government. It also mirrors President Trump’s recent social-media post calling for taxpayer funds to go “directly to Americans in HSA-style accounts” rather than to insurance companies.

Trump’s comments were seen as an endorsement of Cassidy’s approach. Sen. Rick Scott (R., Fla.) said he’s drafting legislation to reflect that plan. White House economic adviser Kevin Hassett added that giving cash directly to people facing higher premiums could form the basis for a bipartisan compromise.

Democrats, however, remain divided. Some, including Sen. Chris Murphy (D., Conn.), argue the proposal would make health insurance less affordable for low-income Americans by reducing direct subsidies. Others, such as Sen. Ron Wyden (D., Ore.), said they are open to discussions if Republicans are serious about curbing costs for consumers.

The standoff began after Democrats demanded a one-year extension of enhanced ACA subsidies, which otherwise expire soon and could raise premiums for more than 20 million Americans. The dispute has stalled budget talks and deepened the impact of the shutdown, which has led to travel disruptions and delayed food assistance.

Senate leaders kept lawmakers in Washington over the weekend as negotiators reviewed a three-bill funding package covering veterans, agriculture and legislative operations. With both sides now trading proposals, senators from both parties say there are early signs of movement toward ending the impasse.

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