Rand Paul proposes legislation to ‘negotiate lower premiums’ for health insurance
Senator Rand Paul (R-KY) has introduced the “Health Marketplace and Savings Accounts for All Act” to make healthcare more affordable and efficient. His legislation aims to expand eligibility for health Savings Accounts (HSAs) to all Americans regardless of income or insurance status and increase the annual contribution limit to $24,500 for 2026. The bill also broadens permissible HSA expenses to include health insurance premiums and gym memberships. Additionally, it seeks to reform Association Health plans to give collective bargaining power to various membership groups like Costco or Amazon, enabling them to negotiate lower insurance premiums. Paul emphasized that increasing choice and competition through these measures could help address rising premiums, especially as government subsidies for the Affordable Care Act are set to expire in 2026. He also highlighted the burden of medical debt in the U.S., currently exceeding $200 billion, and noted that HSAs offer tax advantages and lifelong savings flexibility for medical costs.
Rand Paul proposes legislation to ‘negotiate lower premiums’ for health insurance
Sen. Rand Paul (R-KY) aims to make healthcare efficient and affordable again.
On Thursday, he took efforts to do just that by introducing legislation to strive for an improved healthcare system and lower healthcare costs. Paul introduced the “Health Marketplace and Savings Accounts for All Act” to expand Health Savings Account eligibility for “all Americans.” Additionally, Paul’s proposal would “expand Association Health Plans to provide maximum leverage to negotiate lower premiums with health insurance companies.”
The senator from Kentucky issued a legislative proposal to address the nation’s looming healthcare challenges, as Americans prepare for an increase in premiums in 2026 due to the expiration of government subsidies for the Affordable Care Act. Paul addressed the introduction of his bill and the healthcare obstacles Americans face in a press release.
“Two of the most daunting problems facing Americans are the lack of affordable healthcare options and the fear of exorbitant medical bills,” said Paul. “With my plan, to provide the leverage needed to reduce the cost of premiums, nearly any conceivable membership entity, such as Costco or Amazon, would be empowered to collectively bargain on behalf of their members with health insurers to lower rates.”
Paul explained the benefits of his proposed legislation, which includes the aforementioned eligibility increases and an expansion of permissible HSA purchases, including “health insurance premiums and gym memberships.”
“Additionally, this legislation improves the treatment of health savings accounts so all Americans can obtain them, increases the tax-free maximum contribution by thousands of dollars, and expands what HSAs can be used to pay for, such as health insurance premiums and gym memberships,” Paul added. “If we want lower premiums and better care, we need more choice and competition.”
The senator also highlighted the burden associated with U.S. healthcare costs, noting that the total medical debt in the country exceeds $200 billion.
“HSAs already give millions of Americans the freedom and flexibility to save and pay for medical costs insurance does not cover,” noted Paul’s press release. “Contributions are tax-free, balances can grow tax-free, and withdrawals remain tax-free when used for qualified medical expenses. HSAs also stay with an individual for life, regardless of employment status.”
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Among the changes suggested in Paul’s legislation was: allowing any person in the country to open a tax-free HSA, regardless of income level or insurance coverage; increasing the annual HSA contribution to $24,500 for 2026; and allowing Americans to have more autonomy on how they spend HSA funds, including the purchases of products and services that will improve health.
“The bill also reforms Association Health Plans to unlock new bargaining power for everyday Americans,” read Paul’s release.
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