The US Congress is facing a time-sensitive issue as the enhanced Affordable Care Act (ACA) tax subsidies are set to expire at the end of the year, which could lead to a significant increase in healthcare premiums for millions of Americans. Democrats have been pushing to extend these subsidies, but the Senate failed to advance bills to address healthcare costs this week. In response, House Republicans released a proposed legislation on Friday that does not extend the enhanced tax credits but includes other measures to improve access to healthcare.
The House Republican proposal includes allowing small businesses to join together to buy insurance plans for their employees and implementing new requirements for pharmacy benefit managers to lower drug costs. It also aims to lower premiums for low-income Americans through federal payments, known as cost-sharing reduction payments, starting in 2027. However, health plans that provide abortion coverage would be excluded from these payments.
House Speaker Mike Johnson stated that the proposal aims to tackle the real drivers of healthcare costs and provide affordable care, increase access and choice, and restore integrity to the nation’s healthcare system. However, Democratic House Minority Leader Hakeem Jeffries criticized the proposal, calling it a “toxic Republican Healthcare plan” that hurts everyday Americans and fails to extend the ACA tax credits.
The Senate had previously considered two proposals, one led by Democrats and one backed by Republicans, but both failed to pass due to lack of support. President Trump has advocated for giving money to people to pay for healthcare costs instead of tax credits for ACA plans, stating that he wants to see people buy themselves great healthcare instead of giving billions of dollars to insurance companies.
The issue has sparked concerns among Republicans, with some warning that ending ACA subsidies could cost their party the midterm elections. Some Republicans in the House are seeking ways to extend subsidies, including forcing a vote on the House floor over the objections of party leaders. The House has only four days left in the session before their holiday recess begins, and the Senate’s recess starts on December 20, making it a challenging task to pass legislation before the subsidies expire.