TL/DR –
Congress is negotiating a short-term budgetary fix, the outcome of which could potentially force a government shutdown by the end of September. A discussion point is the 2010 Affordable Care Act, which allowed Americans to use subsidies to buy lower cost insurance; these subsidies were enhanced during the pandemic and extended until 2025 as part of the Inflation Reduction Act. Democrats want these enhanced subsidies to be made permanent and included in the stopgap bill, while Republicans argue that this is a policy debate and not a funding matter.
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Congressional Budget Negotiations Keyed on Insurance Subsidies
As Congress deliberates on a short-term budgetary solution, the matter of insurance subsidies stands as a key issue that could possibly result in a government shutdown by the end of the month.
In a move to keep the government operational till November 21, House Republicans introduced a stopgap bill, also referred to as a continuing resolution. However, disagreements over tax credits could still cause considerable complications.
The Role of Subsidies in Healthcare
The Affordable Care Act, enacted in 2010, made it possible for Americans to utilise subsidies to access affordable insurance. During the pandemic in 2021, Democrats implemented enhanced premium tax credits to offer more support. Initially planned to expire at the end of 2022, these credits were prolonged as a component of the Inflation Reduction Act, as detailed by the KFF health policy nonprofit.
Ongoing Debate Over Subsidies in Congress
Congress Democrats have proposed that the stopgap bill should comprise the enhanced subsidies. They also proposed an alternate continuing resolution to keep the government running till October 31. This proposal would make the enhanced premium tax credits an ongoing feature, reverse Medicaid cuts, unfreeze foreign aid and reinstate funding for public broadcasting.
Senate Minority Leader Chuck Schumer, D-New York, stated, “ACA tax credits must be expanded. We believe that firmly and strongly, not just to save Americans thousands more each year that they’d have to pay, but for the very lives that are at stake if this expires.” Congresswoman Sarah McBride and Sens. Lisa Blunt Rochester did not reply to requests for comments.
A spokesperson for Sen. Chris Coons referred to an interview he gave on CBS’ “Face the Nation,” where he expressed that he and his Republican colleagues are keen to keep the government running and are prepared to address the escalated healthcare costs resulting from the Republican tax bill that was enacted earlier this year through the appropriations process.
Responsibility for Potential Shutdown Disputed
House Speaker Mike Johnson, R-La., alleged that the Democrats would be held accountable if the Republican stopgap failed to pass in due time. He argued that they were trying to include “partisan political preferences” in the midst of a clean funding extension. “That’s a December policy debate and decision, not a September funding matter,” Johnson stated on CNBC. “I don’t think that’s going to work. If the government is shut down because they make that their last stand, it will solely be blamed on Democrats.”
Meanwhile, higher rates have been filed by carriers on the Delaware Health Insurance Marketplace for the upcoming year, as reported by the Delaware Department of Insurance. The approved premium increases for the three marketplace insurers range between 25% and 35%. Open enrollment begins on November 1.
This story was supported by a statehouse coverage grant from the Corporation for Public Broadcasting.
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