Key Takeaways
- Millions of Americans are facing higher health care premiums in the new year due to the expiration of Affordable Care Act (ACA) subsidies
- A bipartisan group of senators is working to strike a compromise to resurrect the enhanced ACA premium tax credits
- The compromise could include extending the credits for a couple of years, reforming the system, and introducing cost-saving reductions
- The legislation would require President Trump’s support to pass
- The House has its own bipartisan effort to extend the ACA subsidies, with a discharge petition signed by four House Republicans and Democrats
Introduction to the Problem
The new year has brought higher health care premiums for millions of Americans, as Congress allowed the Affordable Care Act (ACA) subsidies to expire. This has left many individuals and families facing significant increases in their monthly payments for Obamacare. However, a bipartisan group of senators has been working to find a compromise that could resurrect the enhanced ACA premium tax credits, potentially reducing the impact of rising premiums on those affected.
The Bipartisan Effort
According to Senator Peter Welch, D-Vt., a number of Republican and Democratic senators are seeing the expiration of the ACA subsidies as a disaster for the families they represent, and are therefore working together to find a solution. Welch joined a bipartisan call with a handful of senators to discuss possible health care compromises, including extending the credits for a couple of years, reforming the system, and introducing cost-saving reductions. The senator believes that this legislation is doable, but would require President Trump’s support, given his influence over the Republican majority in the House and Senate.
The Need for Presidential Support
The expiration of the ACA subsidies has been a contentious issue, with Republicans and Democrats fighting bitterly over the extension of the subsidies last fall. This led to the longest government shutdown in U.S. history, and President Trump has remained relatively hands-off, withholding his support for any health care legislation. However, Senator Welch believes that the significant price increases faced by individuals and families across the country will break the logjam in Congress, and that President Trump’s support will be necessary to pass any legislation.
The Impact on Families and Hospitals
The expiration of the ACA subsidies is having a significant impact on families and hospitals across the country. For example, a farmer in Vermont is facing a premium increase from $900 to $3,200 per month, which will have a devastating impact on their finances. Additionally, hospitals, particularly in rural areas, will lose revenue as a result of the premium increases, which will have a secondary impact on the health care system. Senator Welch believes that this will create a sense of urgency among lawmakers to find a solution to the problem.
The House Effort
The House has its own bipartisan effort to extend the ACA subsidies, with a discharge petition signed by four House Republicans and Democrats. The petition would force a floor vote on a three-year extension of the ACA subsidies when the House returns. Representative Brian Fitzpatrick, R-Pa., one of the Republicans who signed the petition, believes that this vote will get even more Republican support, as lawmakers realize the impact of the premium increases on their constituents. Fitzpatrick and Representative Tom Suozzi, D-N.Y., have held meetings with moderate senators to discuss legislative paths to extend the ACA subsidies.
The Path Forward
The Senate returns on January 5, and the House comes back to Capitol Hill on January 6. It remains to be seen whether the bipartisan efforts in the Senate and House will be successful in extending the ACA subsidies. However, with the significant price increases faced by individuals and families across the country, there is a sense of urgency among lawmakers to find a solution to the problem. As Senator Welch noted, the jump in prices will break the logjam in Congress, and it is likely that some form of compromise will be reached in the coming weeks.