The Republican bill would add about $1 trillion to the federal debt over the next decade, according to a new analysis from the Congressional Budget Office.
The bill would also raise premiums by $1,000 a year for some older people and by $2,000 for those under 65.
Those who earn more than $1 million a year would see their premiums rise by $400 a year.
The analysis found that the new tax incentives would be a boon to the health insurance industry and the economy, which are expected to add nearly $1.3 trillion to GDP over the decade.
“The tax credits and tax deductions for businesses and individuals could offset the cost of the new legislation,” CBO Director Keith Hall said in a statement.
The new bill would provide a $5,000 tax credit for individuals who buy coverage through a health insurance exchange, and another $1 for individuals and families who buy insurance through a state-run exchange.
Both tax credits are included in the bill, and they would expire at the end of 2025.
The Senate bill would not give the health care industry any new tax relief.
The Senate bill still includes a $2 billion increase in the Medicare tax credit.
Senators voted to add a $400 tax credit to individual health insurance premiums.
The bill also would allow people to keep their health insurance if they don’t buy insurance or buy less than $600 in coverage a year, a key element of the Senate bill.
The new tax credits will cost an average of $1 per family and $2 per adult, according a CBO analysis.
Democrats have said the health reform package, which the House passed on Tuesday, is designed to help the nation’s middle class.
The White House said Wednesday that the administration is working to get Republicans to a deal on tax relief for businesses, and that the president is confident they will find a way to move forward.
The CBO released the report after Senate Republicans failed to agree on a measure to repeal and replace the Affordable Care Act.