Sen. Bill Cassidy said Sunday he is working closely with President Donald Trump on a proposal to steer billions of dollars in federal healthcare subsidies directly to consumers rather than insurance companies.
Speaking on CBS’ “Face the Nation,” the Louisiana Republican and physician said Trump’s plan would lower premiums, help cover high deductibles, and give patients more control over their health spending.
The president’s idea would redirect roughly $26 billion currently set aside for enhanced premium tax credits created under former President Joe Biden, he added.
“Twenty percent of that $26 billion will go for profit and administrative overhead,” the senator said. “Give it directly to the American people, [as] 100% of the money [would be] used for them to purchase healthcare on their own terms.”
Cassidy argued that current Affordable Care Act policies often carry deductibles of about $6,000, making them effectively “catastrophic” plans even when monthly premiums are subsidized.
He said giving patients direct funds in a dedicated account would let them buy lower-premium plans and pay for out-of-pocket costs.
“It’s a sweet spot — lower premiums, help with the deductible, making the patient the informed consumer,” he said.
On whether he aims to fix or eliminate Obamacare, Cassidy said lawmakers must “work with what you have” with just weeks left before 2026.
He warned that extending the enhanced tax credits Democrats favor is not as simple as assumed because half of states did not plan for an extension and would have to rapidly recalculate insurance rates.
Instead, he said, Republicans and Democrats should work together on an “American bill … where the American people benefit.”
Cassidy also pushed back on fears that residents in his home state would see steep price increases if the credits expire at year’s end.
About 293,000 Louisianans are enrolled in ACA plans.
“We are working to make it work better for them,” he said, again criticizing the burden of large deductibles. “Maybe you can afford the premium. You can’t afford the policy.”
The senator also raised alarms over an upcoming vote by the CDC’s vaccine advisory committee on potential changes to infant hepatitis B vaccine recommendations and on reviewing the safety of vaccine ingredients such as aluminum.
Cassidy said the hepatitis B vaccine at birth has dramatically reduced infections the past two decades and called the vaccine and its components safe.
“This is policy by people who don’t understand the epidemiology of hepatitis B,” he said.
Pressed on recent statements from the president about Tylenol use during pregnancy and the MMR vaccine schedule, Cassidy cited a large Swedish study that found no link between prenatal acetaminophen use and autism.
He said he worries such claims may cause unnecessary guilt for pregnant women.
Still, he noted that Trump “has spoken out strongly in favor of immunizations” and received his flu and COVID shots during his latest physical.
Asked whether he regrets his vote to confirm Health and Human Services Secretary Robert Kennedy Jr., Cassidy said he disagrees with him on some issues but praised his focus on concerns such as ultra-processed foods.
Cassidy, who faces reelection next year, said overhauling health care has been his priority for three decades.
The recent government shutdown, he said, at least renewed focus on making care more affordable. “If we can accomplish that, I will feel like I’ve done my job.”
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