Congress Adjourns With No Solution for Expiring ACA Subsidies, Millions Face Premium Hike

TL/DR –

The Republican-led House and Senate adjourned for the year without a solution for expiring health care subsidies under the Affordable Care Act, potentially causing insurance premiums for about 22 million Americans to rise. However, some lawmakers from both parties hope to act in 2026. If a solution isn’t reached, Democrats plan to use the issue to their advantage in the midterm elections.

Republican-Led Congress Adjourns Without Resolving Health Care Subsidies Issue

The Republican-controlled House and Senate wound down for the year with no resolution on the expiring health care subsidies under the Affordable Care Act. This will result in higher insurance premiums for around 22 million Americans next month. Despite opposition from GOP leaders, some lawmakers hope to address the issue in 2026. Should they fail, Democrats plan to use the issue to gain political ground in the forthcoming midterm elections.

Efforts to Revive Issue Amid Opposition

Despite resistance from Speaker Mike Johnson and Senate Majority Leader John Thune, four swing-district Republicans joined forces with Democrats in an attempt to force a vote on a three-year extension of Affordable Care Act funds. This vote is expected when the House resumes session in the week of Jan. 5. Republican representatives Brian Fitzpatrick, Rob Bresnahan, Ryan Mackenzie, and Mike Lawler joined 214 Democrats in challenging Johnson, who advocates letting the enhanced subsidies expire.

Senate Rejects ACA Funding Extension

The Senate voted down the three-year ACA funding extension last week. Even centrist Senator Susan Collins declined to support the House bill, suggesting instead a bipartisan bill that would include reforms plus a two-year extension. Other Republican senators believe the House bill is unlikely to pass the Senate, but it could facilitate a deal between the two parties.

Debate Over ACA Funding Extension

Many Republicans want the ACA to expire on schedule, while others are open to a temporary extension with certain limitations or a phase-out. House and Senate Republicans proposed bills with conservative ideas, but neither would restore or replace the ACA funds. Democrats are unlikely to tie ACA funding to the Jan. 30 government funding deadline due to the risk of another prolonged government shutdown.

Concerns Raised Over Impacts of ACA Expiry

Senator Jim Justice warned of the financial pain Americans would experience if the ACA funds expire with no transition or replacement plan. Senator Mike Rounds expressed concern over the disagreement regarding the “Hyde” language that prevents federal funding for abortions, which is a sticking point in reaching a bipartisan agreement. Senate Minority Leader Chuck Schumer suggested that it might already be too late to rectify the situation once higher premiums take effect from Jan. 1.

Political Implications of Health Care Costs

Senator Josh Hawley, one of four GOP senators who voted to advance an ACA funding extension, urged Republicans to set aside their long-standing opposition to Obamacare and focus on helping their constituents cope with rising health care costs. He argued that people care more about their current health care expenses than political disputes from the past.

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