Burlison Taps Fed's Trillion-Dollar Interest Payments to Fund Healthcare Reform

U.S. Rep. Eric Burlison (R-Missouri) has proposed a plan to fund his Great American Healthcare Act by redirecting $1 trillion in Federal Reserve interest payments over the next decade.

The plan aims to reform the Federal Reserve's authority to pay interest on reserve balances, which would otherwise be used to offset the costs of implementing the healthcare legislation.

The bill itself would expand eligibility for Health Savings Accounts (HSAs) and raise yearly contribution limits, as well as increase price transparency in healthcare by requiring hospitals and insurance brokers to show real dollar prices for treatments and plans.

However, experts warn that halting interest payments could lead to a loss of control over economy-wide interest rates, potentially raising national debt interest payments and jeopardizing the Federal Reserve's ability to respond to fiscal crises.