Additional Coverage:
Bipartisan Senate Deal Aims to Extend ACA Subsidies, But Faces Hurdles
Washington D.C. – A bipartisan agreement is taking shape in the U.S. Senate that could provide federal subsidies to help lower the cost of Affordable Care Act (ACA) premiums, which expired at the end of 2025. The proposal, if enacted, would reinstate these tax credits for two years and extend the open enrollment period, though with new restrictions designed to combat potential fraud.
Among the proposed changes are limits on qualifying incomes, minimum premium payment amounts, cost-sharing reductions, and increased access to health savings accounts. Senator Bernie Moreno (R-Ohio), a key negotiator, indicated that a draft of the legislation could be finalized as early as Monday.
One significant change in the draft would eliminate the option for $0 monthly premiums for catastrophic health insurance coverage, potentially replacing it with a $5 minimum monthly premium. The proposal would also cap qualifying incomes at no more than 700% of the federal poverty level. For 2025, this translated to $109,550 for an individual household and $225,050 for a household of four, according to the Department of Health and Human Services.
This proposed $5 minimum premium has drawn criticism from some Senate Democrats. Senator Ron Wyden (D-Ore.) labeled it a “rate hike,” while Senator Jeanne Shaheen (D-N.H.) expressed concerns that minimum premium requirements could disproportionately affect low-income individuals and deter them from obtaining health insurance.
However, Senator Moreno defended the $5 monthly premium, stating it is a “reasonable amount that takes the fraud out” of ACA subsidies. Senate Republican leader John Thune (R-S.D.) emphasized that such a minimum is crucial for securing GOP support for the bipartisan measure.
Another contentious issue is the inclusion of the Hyde Amendment, which prohibits federal funding for abortions. Congressional Democrats have indicated that any abortion restrictions would lead them to oppose the measure, while Republicans maintain that its inclusion is essential for their support.
For the final bill to pass, it will require 60 votes in the Senate and a simple majority in the House of Representatives. The negotiations continue as lawmakers seek a path forward on this critical healthcare legislation.