Republicans Introduce Bill to Replace Obamacare Subsidies With Health Freedom Accounts
Senate Majority Leader John Thune (R-S.D.) speaks during a press conference at the U.S. Capitol, Nov. 19, 2025. (Francis Chung/POLITICO via AP Images)
House Republicans on Wednesday unveiled a major new healthcare bill that would replace federal subsidies under the Affordable Care Act with state-level plans and allow competition from other states.
Rep. August Pfluger, R-Texas, announced the legislation alongside Florida Governor Rick Scott (now as a Senator). The bill introduced in the House mirrors similar measures being considered in the Senate following earlier proposals by Scott. It would let current subsidies expire while permitting states to apply for waivers to implement “Health Freedom Accounts,” which function similarly to health savings accounts and cover most healthcare expenses except for abortion or gender transition procedures.
These accounts are designed to replace existing subsidies, potentially offering more control over funds but requiring individuals to manage their own insurance costs through budgeting. Additionally, the legislation would allow residents from non-waiver states to access plans available in waiver-eligible states, fostering cross-state competition among insurers and providers.
Pfluger commented on the bill’s introduction: “We’re proud to join Chairman Rick Scott in introducing this groundbreaking legislation that addresses the core issues of our healthcare system.”
The plan represents a significant step away from bipartisan cooperation on healthcare reform. Recent weeks saw hopes for extending these subsidies fade as lawmakers largely abandoned discussions, raising concerns about potential premium hikes for millions starting January 1st.
Democrats had previously agreed to reopen government funding talks in part to include this specific issue, but the stalemate continues despite initial optimism.
Republicans Unveil Bill to Replace Obamacare Subsidies With ‘Health Freedom Accounts’
House Republicans on Wednesday introduced a new healthcare bill that would replace federal subsidies under the Affordable Care Act with state-level plans and allow competition from other states.
Rep. August Pfluger, R-Texas, announced the legislation alongside Florida Governor Rick Scott (now as a Senator). The measure mirrors provisions already being considered in the Senate following earlier proposals by Scott. It proposes to let current subsidies expire while enabling eligible states to apply for waivers to implement “Health Freedom Accounts,” similar to health savings accounts.
These proposed personal accounts would replace government assistance, covering most healthcare costs but excluding abortion and gender transition procedures. The bill also includes provisions allowing residents of non-participating states to access plans approved under the waiver system, aiming to increase competition among insurers across state lines.
Pfluger emphasized support for the plan: “We’re proud to join Chairman Rick Scott in introducing this groundbreaking legislation that addresses our nation’s healthcare challenges effectively.”
The introduction comes amid ongoing debates over healthcare policy. Earlier discussions involving Democrats had focused on extending subsidies tied to COVID-era provisions, but the current legislative effort shows little sign of bipartisan cooperation despite earlier promises.
This new approach marks a shift away from collaborative negotiations, highlighting deep divisions in addressing affordability concerns through individual savings accounts rather than federal mandates or funding mechanisms.
