The government shutdown has reignited the debate over the future of the Affordable Care Act (ACA), also known as Obamacare. The tax credits for people who get health insurance through the ACA marketplaces are set to expire at the end of the year, and Democrats are refusing to vote to reopen the government until Republicans agree to extend the subsidies. Republicans, on the other hand, are insisting that Democrats vote to reopen the government before they will negotiate on the issue.
The ACA, passed in 2010, aimed to decrease the number of uninsured people in the country and make coverage more affordable. In 2021, Democrats expanded premium help during the pandemic, which led to a record 24 million people signing up for insurance coverage through the ACA. However, if the tax credits expire, annual out-of-pocket premiums are estimated to increase by 114%, or an average of $1,016, next year.
Democrats are pushing to extend the subsidies, with some suggesting a permanent extension, while others are open to a shorter period. Senate Democratic leader Chuck Schumer has repeatedly called for a “serious negotiation” on the issue. Republicans, on the other hand, are trying to scale back the ACA, with some wanting to scrap the expanded subsidies and overhaul the entire law. Others have proposed more modest changes, such as lowering income limits and stopping auto-enrollment.
Despite the public stalemate, lawmakers are feeling increased urgency to find a solution as the November 1 open enrollment date approaches. Some Republicans, such as Senator Josh Hawley, are open to extending the subsidies, and bipartisan groups of lawmakers have been discussing potential changes, including income limits and making the lowest-income people pay very low premiums instead of nothing.
A recent poll found that about 6 in 10 Americans are “extremely” or “very” concerned about their health costs going up in the next year, with worries extending across age groups and including people with and without health insurance. The poll highlights the importance of finding a solution to the issue, and lawmakers are under pressure to act before the subsidies expire.
As the shutdown continues, lawmakers are exploring potential compromises, including extending the enrollment dates for the ACA. Democratic Senator Jeanne Shaheen has been talking to lawmakers since the shutdown began, trying to find areas of compromise. With the clock ticking, it remains to be seen whether lawmakers can find a solution that satisfies both parties and avoids a significant increase in health care costs for millions of Americans.