Hawley Pushes Tax-Free Health Care Plan as ACA Subsidy Deadline Nears

Washington, D.C. (KFMO) - The debate in Washington is intensifying as Affordable Care Act subsidies are set to expire in just weeks, and Missouri Senator Josh Hawley is pushing a new plan aimed at lowering health care costs.

At a Wednesday hearing, Hawley said his proposal would make health care expenses tax-free, allowing Americans to deduct premiums and all out-of-pocket medical costs from their taxes. He noted the plan would include an upper limit to prevent high-income earners from taking advantage of the system. Hawley shared a letter from a Missouri resident who told him her family health insurance premiums have reached $1,500 a month, calling the situation a crisis facing many Americans. With the expiration date for ACA subsidies approaching January 1, lawmakers remain divided.

Republicans are split on whether to let the enhanced subsidies lapse or replace them with alternatives such as expanded health savings accounts. Democrats, meanwhile, are pushing for a clean extension, though they disagree on how long it should last.

Hawley warned that without congressional action, 24 million Americans could face losing coverage.