U.S. Senator Bill Cassidy (R-LA) delivered a speech on the Senate floor urging an end to the ongoing government shutdown and proposing new measures to address rising health care costs for American families. Cassidy criticized the Enhanced Premium Tax Credits (ePTC), arguing that they primarily benefit insurance companies without incentivizing lower premiums.
Cassidy stated, “I want to present colleagues and fellow Americans with an idea that can move us forward out of this stalemate and solve the health care affordability problem.”
He emphasized his experience as a physician in a public hospital, highlighting how middle-income patients struggle with unaffordable insurance. According to Cassidy, current policies such as ePTC send billions of taxpayer dollars directly to insurers, resulting in higher costs rather than savings for families.
“The Enhanced Premium Tax Credit, or ePTC, is the latest example — a program that sends billions of taxpayer dollars straight to insurers in the hope that families will see smaller bills,” said Cassidy. “But let’s face it — that doesn’t make health care cheaper and makes it more expensive for millions.”
Cassidy proposed an alternative approach involving Federally Pre-Funded Flexible Spending Accounts (FSAs). These accounts would allow eligible Americans to pay directly for health expenses like dental, vision, orthodontics, prescriptions, and preventive care but would not cover insurance premiums. He argued this model gives individuals more control over their health spending and promotes cost transparency.
“Instead of paying insurance companies to manage our money, let’s trust Americans to manage their own care — with a pre-funded Federal Flexible Spending Account,” he said.
Cassidy noted that FSAs are already offered by many employers and within federal programs. He referenced existing infrastructure within government agencies capable of implementing such accounts broadly.
He also credited former President Trump’s administration for its efficiency during Operation Warp Speed as evidence that rapid change is possible: “By the way, if there is anyone who can push the bureaucracy to move faster, it is President Trump. His Operation Warp Speed developed a vaccine to protect Americans from Covid in 10 to 11 months when some said it would take 10 years and the most optimistic was 18 months. President Trump can make this happen.”
According to Cassidy, moving funds from ePTCs into individual FSAs could offer better value without increasing federal spending: “Yes, it will — about the same as the current ePTC. My democratic colleagues should like that. An individual is getting better value through the Federally funded FSA.”
He concluded by calling for bipartisan cooperation: “I am a rock ribbed Republican but I will say, this is not a Republican solution, it is not a Democrat solution, it is an American solution.”
Cassidy urged Congress to reopen the government before addressing these reforms.
