ACA Subsidy Extension Fails, Millions Face Rising Health Insurance Premiums
TL/DR –
Obamacare subsidies, which will run out at the end of the year, will cause health insurance premiums to rise for millions of Americans. All attempts by Republicans in the House of Representatives to trigger a vote on the tax credits have failed. Once the subsidies end, premiums for the average enrollee who receives the tax credits from the Obamacare marketplace will double, according to a nonpartisan health policy research group.
U.S. Congress Fails to Extend Obamacare Subsidies; Millions Face Health Care Premium Increase
Speaker Mike Johnson announced on December 16th that lawmakers failed to extend the expiring Obamacare subsidies. This implies an impending increase in health insurance premiums for millions of Americans.
Despite efforts from moderate GOP lawmakers to vote on the tax credits, no consensus was achieved. Johnson indicated that a mechanism to alleviate the situation was sought but proved infeasible.
Following this, about 22 million Americans are set to lose their Affordable Care Act subsidies. Once expired, health premiums will double for enrollees who receive tax credits on the Obamacare marketplace, according to KFF, a nonpartisan health policy research group.
Johnson indicated that the GOP’s opposition to extending credits included efforts to curb federal spending, and concerns raised by a Government Accountability Office report about fraud risks in the program.
A bill to extend COVID-era subsidies for three years failed to advance in the Senate on December 11th. It did not meet the 60-vote threshold despite support from all Democrats and four Republican senators.
A separate GOP-backed health care reform bill will still face a vote in the House. The bill aims to assist businesses in grouping together to procure health insurance and pledges funding to reduce out-of-pocket costs in 2027.
This move, however, was criticized by Senate Minority Leader Chuck Schumer, lamenting the impact on American families who may face an additional $500-$1,000 monthly for their health care.
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