WASHINGTON, D.C. — It’s a race against the clock for Congress, as lawmakers work to avoid major health care price increases that could impact millions of Americans.
Open enrollment is underway and Monday, Dec. 15, is the deadline to enroll in or change plans for coverage to start January 1. But Washington remains stuck on how to avoid price increase for the 22 million Americans who rely on Affordable Care Act subsidies.
Enhanced Affordable Care Act tax credits — put in place by President Biden during the pandemic — are set to expire December 31 unless Congress acts.
If they vanish, the average monthly premium for recipients — including self-employed business owners, freelancers and early retirees — is expected to more than double in 2026, according to KFF.
“With just days left on the clock, the clearest, cleanest, easiest and best path left is the bill what Democrats are proposing,” said Senate Minority Leader Chuck Schumer, D-N.Y. “A clean extension of current tax credits. That’s it. No poison pills, no gimmicks, just relief.”
Democrats want a clean extension of the subsidies for three years. But Republicans are not on board.
“There’s no way, in my opinion, we should move forward on those existing subsidies as they are without reforming them,” said Sen. Dave McCormick, R-Pa.
This week, Senate Republicans rolled out a competing proposal centered on health savings accounts, or HSAs, and lower-cost insurance options.
“And it’ll get us away from the practice of giving the money all to the insurance companies and put it back in the hands of the patients,” said Senate Majority Leader John Thune, R-S.D.
Their bill would deposit $1,000 to $1,500 into HSAs paired with bronze or catastrophic plans on the Obamacare exchanges in 2026 and 2027. Eligible individuals earning less than 700 percent of the federal poverty level would receive $1,000 if aged 18-49 and $1,500 if aged 50-64.
Republicans say the plan would lower premiums by 11 percent starting in 2027. However, the GOP plan also limits how those dollars could be used. It blocks the dollars from being used for abortion or gender transition care. The bill also tightens Medicaid rules for undocumented immigrants.
“Our bill is the only proposal on either side that has partywide support on both sides of the Capitol. Democrats are fighting for lower health care costs for the American people, Republicans are fighting with each other,” said Schumer.
The Senate is scheduled to vote on both the Democratic and Republican proposals Thursday. Either plan needs 60 votes to pass the Senate, and as of now, neither party’s plan is likely to pick up the necessary support.
In the House, several moderate lawmakers have come up with bipartisan plans — from short-term fixes with new rules to multi-year extensions with income caps. If House leadership stalls the bipartisan plans, some members may try a procedural move known as a discharge petition to force the legislation onto the House floor.
House Republican leaders said Wednesday they plan to tackle soaring health insurance premiums next week, but provided limited details on what the plan entails.
