The House Republican alternative to Obamacare — called the Lower Health Care Premiums for All Americans Act — would lower the cost of the most common ACA-level health plan by 12 percent and save American taxpayers about $30 billion over ten years, according to a recent analysis.
Speaker Mike Johnson (R-LA) and House Republicans unveiled the plan last week as a comprehensive effort to make health care more affordable, expand choices, and rein in waste and fraud in the system.
Johnson criticized the long-standing impact of Obamacare, saying it “broke the American health care system,” drove up premiums, and narrowed networks. He argued that while Democrats favor higher taxpayer payouts to preserve the status quo, Republicans are focusing on reforms that boost competition, lower costs, and restore integrity to the marketplace.
Key provisions of the House GOP bill include:
- Appropriating Cost-Sharing Reduction (CSR) Payments: Directly funding insurers to lower the benchmark silver premiums that millions of Americans purchase on the ACA marketplaces. Analysis shows this move alone would reduce premiums by about 12 percent, equating to roughly $900 in annual savings for a typical 40-year-old single adult. Lower premiums would also shrink federal subsidy costs, yielding an estimated $30 billion in savings over a decade.
- Greater Pharmacy Transparency: Increasing disclosure and accountability for pharmacy benefit managers (PBMs) to help reduce prescription costs.
- Expanded Association Health Plans (AHPs): Allowing groups like Costco or Sam’s Club to form health insurance pools for self-employed workers and other members, potentially cutting premiums by 23–29 percent compared with typical ACA plans.
- Protections for Small Employers: Ensuring small and mid-sized businesses can shield themselves against catastrophic claims and offer more affordable coverage.
- Defined Contributions for Employers: Reinstating rules from the Trump administration that allow employers to give defined contributions toward employees’ individual plans, increasing choice and portability.
Ryan Long of the Paragon Health Institute noted that restoring CSR funding would reverse “destructive silver loading” and restore the ACA’s original intent — bringing down premiums for consumers while reducing federal spending.
Though Senate Democrats previously objected to CSR appropriations in the Big Beautiful Bill, requiring a 60-vote threshold, proponents of the House GOP bill argue the savings and consumer benefits justify bipartisan support.
The House plan aims to broaden health insurance options, enhance market competition, and ease the financial burden on families and taxpayers alike, positioning itself as a clear alternative to expanding Obamacare subsidies.
