US Congress Fails to Reach Deal on ACA Subsidies, Millions at Risk of Higher Premiums
As the clock ticks down, congressional negotiators remain deadlocked over a potential extension of enhanced Affordable Care Act (ACA) subsidies, leaving millions of Americans facing steep health insurance hikes come January. A deal that was supposed to provide breathing room for lawmakers in negotiations had instead veered off course, with discussions devolving into familiar fights.
In December, Democrats had signaled their willingness to negotiate limits on the subsidies, but talks have stalled almost immediately. Republicans have insisted that any extension must revisit abortion-related restrictions in ACA marketplace plans, a demand Democrats see as both unnecessary and designed to fracture their caucus. Senator Angus King (I-Maine), an independent who caucuses with the Democrats, believes GOP negotiators drew a "red line" that has also made it impossible for Democrats to engage in substantive talks.
The Republican Party remains divided over alternative deals, with some citing a lack of clear direction from President Donald Trump. Ideas being floated include new health savings accounts and income caps layered onto the existing subsidy structure. However, conservatives are pushing for more sweeping rewrites of the ACA, even though this could lead to higher premiums for millions in the interim.
GOP strategists argue that supporting the ACA is a non-starter for many Republican members, who view it as a "swear word" and risk being challenged in primaries if they support it. This has led to a situation where some Republicans are urging leadership to let the subsidies collapse, hoping to force a reckoning with what they see as a broken law.
In brief comments, Trump has oscillated between disinterest in extending the subsidies altogether and acknowledging that a short-term extension might be necessary. However, no plan has been released from the White House.
Democrats have announced plans to bring a vote on the Senate floor next week, despite it being likely to fail. Senator Amy Klobuchar (D-Minn.) warned that the outcome is in the hands of Trump and Republicans, saying "that vote will happen" – but not necessarily pass.
As the clock ticks down, congressional negotiators remain deadlocked over a potential extension of enhanced Affordable Care Act (ACA) subsidies, leaving millions of Americans facing steep health insurance hikes come January. A deal that was supposed to provide breathing room for lawmakers in negotiations had instead veered off course, with discussions devolving into familiar fights.
In December, Democrats had signaled their willingness to negotiate limits on the subsidies, but talks have stalled almost immediately. Republicans have insisted that any extension must revisit abortion-related restrictions in ACA marketplace plans, a demand Democrats see as both unnecessary and designed to fracture their caucus. Senator Angus King (I-Maine), an independent who caucuses with the Democrats, believes GOP negotiators drew a "red line" that has also made it impossible for Democrats to engage in substantive talks.
The Republican Party remains divided over alternative deals, with some citing a lack of clear direction from President Donald Trump. Ideas being floated include new health savings accounts and income caps layered onto the existing subsidy structure. However, conservatives are pushing for more sweeping rewrites of the ACA, even though this could lead to higher premiums for millions in the interim.
GOP strategists argue that supporting the ACA is a non-starter for many Republican members, who view it as a "swear word" and risk being challenged in primaries if they support it. This has led to a situation where some Republicans are urging leadership to let the subsidies collapse, hoping to force a reckoning with what they see as a broken law.
In brief comments, Trump has oscillated between disinterest in extending the subsidies altogether and acknowledging that a short-term extension might be necessary. However, no plan has been released from the White House.
Democrats have announced plans to bring a vote on the Senate floor next week, despite it being likely to fail. Senator Amy Klobuchar (D-Minn.) warned that the outcome is in the hands of Trump and Republicans, saying "that vote will happen" – but not necessarily pass.