The President of the United States, Donald Trump, expressed his support on Tuesday for a Republican proposal that would replace the tax credits of the Affordable Care Act (Obamacare) with direct payments to citizens, during a rally in Mount Pocono, Pennsylvania.
"I don't want to give money to the insurance companies. I love the idea of the money going directly to the people, not to the insurance companies," Trump told his supporters at the event.
The measure, introduced by senators, would replace expanded tax credits with direct payments to Americans earning up to 700% of the federal poverty level who enroll in plans with high deductibles and low premiums. The payments would be deposited into tax-advantaged health savings accounts, valued at $1,000 for people aged 18 to 49 and $1,500 for those aged 50 to 64.
According to Senator Bill Cassidy, the author of the initiative, none of the money could be used for abortion services or gender transition treatments.
Republican lawmakers argue that the measure channels resources directly to consumers and not to insurance companies, which they say have reaped huge profits under the current system.
Democrats criticized the initiative, calling it "junk insurance" and stating that no member of their party would support it. Minority Leader Chuck Schumer said the Republican proposal is a "failure" and reflects the party's lack of a coherent plan.
The Republican proposal, backed by Trump, seeks to replace Obamacare's tax credits with direct payments to citizens, instead of providing subsidies to insurance companies. According to lawmakers from the party, this measure would allow beneficiaries to spend the money as they see fit on medical services through tax-advantaged health savings accounts, and prevents insurance companies from receiving the subsidies directly, as is the case under the Affordable Care Act.
According to party lawmakers, this allows resources to be channeled directly to patients and reduces the profits of insurance companies.