Sen. Bill Cassidy (R-La.) said a bipartisan agreement is possible after two competing Senate proposals to lower health care costs failed to advance. Democrats sought a three-year extension of enhanced premium tax credits, while Cassidy’s GOP alternative would redirect funds to expand HSAs for people on bronze exchange plans to help cover high deductibles. Cassidy said he would consider a short-term extension of credits for those with higher premiums if Democrats agree to measures addressing roughly $6,000 in average out-of-pocket costs. He argued the HSA approach could give lawmakers until the end of March to implement reimbursements.
Sen. Cassidy Seeks Bipartisan Fix On Health Costs After Senate Votes Falter
Washington — Sen. Bill Cassidy (R-La.) said Sunday that a bipartisan compromise is possible to address rising health care costs after two rival bills failed to advance in the Senate last week.
Lawmakers Still Far Apart Over Tax Credits And Deductibles
Speaking on Face the Nation with Margaret Brennan, Cassidy urged Democrats and Republicans to meet and find common ground as lawmakers debate expiring premium tax credits that help millions buy coverage under the Affordable Care Act.
Democrats had proposed a three-year extension of the enhanced premium tax credits. Republicans, led by Cassidy, offered an alternative that would not extend those credits but instead redirect funds to expand health savings accounts (HSAs) for people enrolled in bronze plans on state marketplaces. The GOP plan is intended to lower monthly premiums by encouraging enrollment in lower-tier plans while allowing HSA funds to be used for deductibles and other out-of-pocket costs.
The two proposals failed to gain the votes needed to move forward in separate Senate roll calls. Cassidy noted that while premium relief is important, many Americans also struggle with very high deductibles.
"You've got to put cash in the patient's pocket to pay the out of pocket," Cassidy said. "I would be willing to do a short-term extension of the premium tax credit for those people with higher premiums if they will concede that we've got to do something for the $6,000 out of pocket."
Searching For A Middle Ground
Cassidy said he is actively searching for a compromise that addresses both parties' priorities — lowering premiums for those facing the steepest costs while providing direct help for high deductibles.
"Let's just meet. Let's address our concerns, and then this Republican would be willing to do something on a short-term extension of the premium tax credits if that's what it takes to get the deal," he said. "That would help folks with more expensive premiums while also helping everyone with their deductible."
Some senators have expressed cautious optimism that a limited, time‑bound extension of enhanced tax credits — perhaps with new eligibility limits — could be part of a compromise. Lawmakers have pointed to an urgent timeline: roughly 22 million Americans could face higher costs if the credits expire at month’s end.
Cassidy said his HSA-centered approach could give Congress more time to implement a solution, noting that many HSA reimbursements can be processed by submitting receipts and that the mechanism could be operational by the end of March.
"We can get this done," Cassidy said. "And I think we can meet the concerns, both about the out of pocket, but also about the premium."
The coming days will likely determine whether negotiators can bridge the gap between premium relief and direct out-of-pocket assistance before the credits lapse.
