The US government has shut down due to a disagreement between Democratic and Republican lawmakers over healthcare demands. At the center of the issue are tax credits that have made health insurance more affordable for millions of people since the COVID-19 pandemic. These subsidies, which were first put in place in 2021 and extended a year later, are set to expire at the end of the year if Congress doesn’t extend them. Democrats are demanding that the subsidies be extended again, as well as reversing Medicaid cuts made by President Donald Trump’s mega-bill passed this summer.
If the subsidies expire, millions of people who purchase health insurance through the Affordable Care Act (ACA) will see their premiums more than double. An analysis by the Kaiser Family Foundation (KFF) estimates that annual out-of-pocket premiums will increase by 114%, or an average of $1,016, next year. Additionally, millions of people are expected to lose Medicaid coverage due to the cuts in Trump’s bill, which includes over $1 trillion in cuts to Medicaid and food assistance over the next decade.
Democrats argue that healthcare can’t wait and that an extension of the health subsidies needs to be negotiated immediately. They claim that people are already receiving notices of premium increases for next year and that the higher healthcare costs will come at a time when the cost of living is already too high. Republicans, on the other hand, say that negotiations over healthcare can happen after the government is funded and have offered a stopgap measure to keep the government open until November 21.
However, many Republicans in Congress are still strongly opposed to extending the enhanced tax credits, making it unclear if a deal can be reached. The government shutdown has significant implications for millions of Americans who rely on healthcare subsidies and Medicaid. Democrats are insisting that any government funding bill must address their healthcare demands, while Republicans are arguing that those negotiations can happen later. The standoff between the two parties has left millions of Americans facing uncertainty over their healthcare costs and coverage.