WASHINGTON, D.C. — Congress is running out of time to prevent major health care cost increases for millions of Americans.
After two competing plans failed in the Senate last week, House Republicans are now rolling out a new proposal to address the issue. However, the new proposal does not include any type of extension of the soon-to-expire enhanced Affordable Care Act subsidies put in place during COVID by former President Joe Biden.
With just days to strike a deal, Washington is once again racing against a health care deadline. If Congress doesn’t act soon, enhanced Affordable Care Act tax credits — used by millions of Americans to buy health insurance — will expire, potentially sending monthly premiums soaring.
“This is the whole reason we had the government shutdown was health care. The Democrats wanted to continue the Obamacare subsidies and Republicans didn’t,” said Dr. Todd Belt, professor and director of the Political Management Master’s Program at George Washington University.
Democrats say extending those subsidies is essential to keep coverage affordable.
“Senate Republicans just shoved the American people off the side of a cliff,” said Senate Minority Leader Chuck Schumer, D-N.Y. “Now, Republicans have all but guaranteed that tens of millions of people will see their premiums double or triple or more next year.”
“We’re working on a package of legislation that will reduce premiums for all Americans, not just 7% of people,” said House Speaker Mike Johnson, R-La., last week.
House Republican leaders unveiled the new health care package late Friday: The “Lower Health Care Premiums for All Americans Act,’’. Republicans say the plan targets the root causes of rising costs — without extending the ACA subsidies.
The proposal would allow more employers to band together to buy insurance, boost transparency from pharmacy benefit managers to lower drug prices and fund a cost-sharing reduction program to lower premiums for certain ACA enrollees.
However, House Republicans remain divided over the enhanced subsidies. Some moderates have unveiled legislation that extends the subsidies with reforms, like income caps. However, many fiscal conservatives say time is up for the COVID-era subsidies.
“With regard to those extensions, there’s a lot of people who are very concerned about Obamacare and the fact that the subsidies were created by Democrats for COVID-era, limited use,” Speaker Johnson told reporters last week. “We just can’t get Republican votes on that for lots of reason, not enough of them.”
The White House has yet to unveil a plan and is waiting to see what Congress can produce.
“I leave it to them. And hopefully they’re going to put great legislation on this desk right here,” said President Trump on Friday. “They’ll go in the form of a insurance account, health care account or any other form that we can create, we have a lot of different forms. We want to give the money to the people and let the people buy their own great health care and they’ll save a lot of money and it’ll be great.”
Having support from moderate House Republicans, who view the expiring tax credits as a major issue for them in 2026, will be vital to get any plan through the House. Some type of extension could be the only way to pick up their support. Reports suggest that Republican leaders could allow a floor vote on an amendment to their package relating to the enhanced ACA subsidies.
The bill will receive a markup in the House Rules Committee Tuesday, with a floor vote expected later in the week. House members have just four days left in the session before their holiday recess begins on Friday. The Senate’s recess begins Saturday.
