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ACA Subsidies Set to Expire, Threatening Soaring Premiums for Millions
Washington D.C. – House Speaker Mike Johnson (R-La.) confirmed Tuesday that crucial Affordable Care Act (ACA) subsidies are slated to expire at the end of the year, a move that is expected to significantly increase health insurance premiums for enrollees nationwide.
Speaker Johnson informed reporters that despite extensive negotiations over the weekend, an agreement to extend the subsidies could not be reached. The impending expiration of these tax credits is projected to more than double the average premium for individuals enrolled in Obamacare plans starting next year.
The decision carries considerable political weight, especially for moderate Republicans in competitive districts who acknowledge the potential backlash from constituents facing higher healthcare costs. Last week, House leadership had indicated a willingness to consider a vote on an amendment to extend the subsidies as part of a broader healthcare package. However, that prospect now seems to be off the table.
Rep. Mike Lawler (R-N.Y.) voiced strong disapproval following Johnson’s announcement in a closed-door meeting with Republicans, calling the situation “absolute bull—-” and “political malpractice.” Lawler expressed frustration that lawmakers would not have an “up-or-down vote” on the issue.
The House is scheduled to vote Wednesday on alternative legislation designed to address the expiring ACA tax credits. This bill aims to reintroduce federal reimbursements to insurance companies for cost-sharing reductions they are mandated to offer to certain participants. Additionally, the proposed legislation seeks to bolster “stop-loss” policies for insurers, offering protection against unexpectedly high insurance claims, among other provisions.
This development follows the Senate’s rejection last week of competing healthcare proposals from both Republican and Democratic factions. Democrats had pushed for a three-year extension of the tax subsidies, while Republicans advocated for a plan to establish health savings accounts (HSAs) for some enrollees.
The Senate’s vote on extending tax credits was part of an exchange for Democratic support to reopen the government. Former President Donald Trump had previously endorsed the Senate Republicans’ HSA plan, aligning with his vision of direct payments to Americans for healthcare rather than channeling funds directly to insurance providers.