Premium tax credits on the Affordable Care Act will expire soon, and Republican lawmakers are now grasping at straws to come up with a plan to help their constituents. In 2025, as inflation reached its peak, everything became expensive.
However, in 2026, healthcare will almost be out of reach for millions of Americans who are already wondering if it is better to cancel their insurance plans.
In the midst of all the chaos, Republicans have come up with a plan that will give out $1,500 paid directly into the accounts of a few Americans to help them cover rising medical costs.
Democrats’ plan continues to send your money to health insurance companies and doesn’t lower health care costs.
Under our plan, we give you a Health Savings Account so you can shop for the best deal. It trusts the PATIENT to be in CHARGE of her care, lowering her costs! pic.twitter.com/E9gqegFtpJ
— U.S. Senator Bill Cassidy, M.D. (@SenBillCassidy) December 10, 2025
This move comes at a time when the Republicans in Congress have locked horns over how to address increasing health care expenses.
Senate Health, Education, Labor and Pensions Committee Chairman Bill Cassidy and Senate Finance Committee Chairman Mike Crapo, Republican senators, have presented a bill that proposes the federal government would make a one-time deposit into the accounts of people who are already enrolled in certain plans of the ACA and are eligible under the conditions set for the payment.
Under this bill, those who will be found eligible will receive payments. The amount would cap at $1000 for individuals ages 18 to 49 years, and up to $1,500 for those ages 50 to 64.
The ACA tax credits expire in less than 30 days, and Republicans don’t have a plan to lower the cost of health care.
But we do. pic.twitter.com/t45Uc1vLaw
— Rep. Morgan McGarvey (@RepMcGarvey) December 2, 2025
Once the tax credits on premiums expire, the out-of-pocket payments, such as deductibles and co-payments which will become expensive, and that is where these payments will come in handy. However, an independent analysis of this plan shows that even $1,500 will only cover a fraction of average ACA deductibles, as under the bronze plan, a typical deductible will be almost $7,476 in 2026.
To qualify for the payments, an individual must meet several conditions:
- An individual must be enrolled in a bronze-level or catastrophic plan through the ACA.
- The household income should be at or below $109,550 for an individual or $225,050 for a family of four.
- Applicants must be at least 18.
This plan, however, is not for those who are enrolled in higher premiums and lower cost-sharing plans such as Silver, Gold, and Platinum. Also, people who are on employer-sponsored insurance, Medicare, and Medicaid would be excluded from this.
Trump comes up with a concept of a healthcare plan : give Americans money to buy their own insurance which props up big insurers, keeps costs insane, and lets them deny whatever they want while never having to fix this system. pic.twitter.com/DsXcBUGC6O
— Outspoken™️ (@Out5p0ken) November 17, 2025
This is the first-ever healthcare-related plan from the current administration, after assuring the American people of new healthcare plans for almost a decade. This bill has Donald Trump’s support and has been called a way to put money directly into Americans’ pockets.
Trump spoke aboard Air Force One and argued that health insurers have “ripped off the public”. And then he claimed that this direct-payment approach is the best option because it gives people control over their healthcare dollars.
