Dive Brief:

• The House Republicans’ healthcare bill promoting healthcare savings accounts (HSAs) is deepening the political ideological divide, reports SHRM. HSAs are costly health plan options for many mid- and low-wage earners.
• The GOP’s American Health Care Act (AHCA), which aims to repeal and replace the Affordable Care Act, would cut federal subsidies for the healthcare of consumers not covered by employer-sponsored health plans.
• Democrats and progressives largely oppose the bill and the HSA component, which they say favor the affluent, SHRM notes. The House votes on the AHCA today.  

Dive Insight:

A Benefitfocus study found that HSAs are becoming more popular, especially among millennials. These accounts offer tax incentives and allow account holders to contribute to them in much the same way they contribute to their retirement plans. Nonetheless, low-wage earners are less likely to select HSAs.

HSAs have garnered some attention before the AHCA as an aspect of high-deductible healthcare plans. These plans are supposed to diffuse costs for employers and employees alike, but how an HSA would work in practice may be unrealistic for hourly workers.

The first vote regarding the ACA repeal will take place tonight.