As the new year approaches, millions of Americans are bracing for significantly higher health care premiums due to Congress allowing Affordable Care Act (ACA) subsidies to expire. This decision has left many families concerned about their financial well-being, especially those enrolled in Obamacare.
In response to the looming crisis, a bipartisan group of senators has been engaged in discussions aimed at finding a compromise that could potentially revive the enhanced ACA premium tax credits. These credits are essential for mitigating the impact of rising monthly payments faced by many enrollees. Senator Peter Welch from Vermont emphasized the urgency of the situation during an interview on Morning Edition, stating that both Republican and Democrat senators recognize the impending disaster this will create for the families they represent.
During a bipartisan call reported by Punchbowl News, Senator Welch outlined several potential reforms to the ACA subsidies. He suggested that lawmakers could consider extending the credits for a couple of years and implementing reforms such as income caps, copays, and penalties for insurers committing fraud. Welch stated, “You actually could introduce some cost-saving reductions that have bipartisan support.”
Welch noted that for these proposed changes to gain traction, the involvement of President Trump is crucial. “It would require that President Trump play a major role in this, because he has such influence over the Republican majority in both the House and the Senate,” he explained. Last fall, the political landscape was tumultuous as both parties clashed over the extension of ACA subsidies, resulting in the longest government shutdown in U.S. history. Despite this, Trump has largely remained hands-off regarding health care legislation.
Senator Welch expressed concern over the dramatic increase in premiums that families are facing. He provided an alarming example of a farmer in Vermont whose premium is set to rise from $900 a month to $3,200 a month, highlighting the severe financial strain this will place on families. “There’s going to be sticker shock,” Welch said, noting the secondary impact on rural hospitals that are likely to experience a revenue loss.
While the Senate is working towards a compromise, the House of Representatives is also pursuing a bipartisan initiative to extend ACA subsidies. Just before the mid-December recess, four House Republicans joined Democrats in signing a discharge petition for a three-year extension of the ACA subsidies. This move forces a floor vote on the bill when the House reconvenes. Representative Brian Fitzpatrick from Pennsylvania remarked that he anticipates increased Republican support for the vote, stating, “Given the choice between a clean three-year extension and letting them expire, that’s not a hard choice for me.”
As Congress gears up for the new year, the Senate returns on January 5 and the House reconvenes on January 6, making these upcoming weeks critical for the future of ACA subsidies. Both chambers must work together to ensure that millions of Americans do not face the burden of soaring health care costs without the necessary support.