WASHINGTON, D.C. — In just over one month, enhanced Affordable Care Act subsidies are set to expire. Extending the subsidies was a key demand by Democrats during the longest government shutdown in history.
Without the extension, health care costs are expected to skyrocket, and many Americans are already noticing higher premiums.
The best solution for Republicans, who control both chambers of Congress and the White House, varies. Some moderate Republicans want to temporarily extend the subsidies before the end of the year and buy some time to find a better, more permanent solution.
Other Republicans — including President Donald Trump — want to take a completely different approach and send federal assistance directly to consumers rather than health insurers, which is currently the case under Obamacare.
If the enhanced subsidies lapse as scheduled, premiums for roughly 22 million Americans are expected to skyrocket — on average, over 100%. That’s according to the nonpartisan health policy research group KFF.
Created by the Biden administration in 2021, the enhanced premium subsidies made Obamacare plans far more affordable — offering little to no monthly costs for many low-income consumers and extending aid to the middle class for the first time. The expanded support helped drive a record 24 million enrollments this year — double the number from 2020, with more than 90% receiving premium assistance.
“Either Republicans finally decide to extend Affordable Care Act tax credits this year, or the American people will throw Republicans out of their jobs next year and end the speakership of Donald J. Trump once and for all,” said House Minority Leader Hakeem Jeffries, D-N.Y. “That’s how this fight ends.”
Extending the enhanced subsidies would cost about $350 billion over the next decade.
Many Republicans believe the extension of the COVID-era enhanced subsidies are not the best option — despite the rising costs associated with allowing them to lapse.
“The discussion is fine with me, but keep in mind, a lot of this stuff was put into place during COVID. COVID’s long past us now, and it’s time to take a look at who is it that we are trying to help get health care and what kind of subsidies are we looking at,” said Rep. Mike Kelly, R-Pa. “What is positive for the American people and making sure that those who need health care coverage are able to get health care coverage.”
“Subsidies can only go so long before you’re unable to subsidize what you need. We need to make sure that any government subsidies are put together so that they reflect the needs of the people they’re meant to help,” said Rep. Jack Bergman, R-Mich. “How do we continue to put the money necessary in subsidies in the marketplace so that we don’t create an environment where people live off of subsidies that could eventually disappear, period,” Bergman added.
Within the next month, a vote in the Senate on extending the enhanced subsidies is expected — guaranteeing that vote was a concession that eight Senate Democrats negotiated from Republican leaders in exchange for their vote to end the shutdown.
But as of now, it’s unclear whether any plan — from either party — can actually muster the support necessary to pass, especially in the Senate, where 60 votes are required to break the filibuster.
