As the Affordable Care Act (ACA) subsidies are set to expire for millions of Americans at the end of the month, the Senate is preparing to vote on two significant health care-related bills this Thursday. However, both proposals are anticipated to fail. This situation arises from a compromise made to reopen the government following the longest shutdown in U.S. history, with Senate Republicans agreeing to provide Democrats a vote on a bill of their choosing to extend these vital subsidies.
Democrats are advocating for a three-year extension of the ACA subsidies, emphasizing that without this extension, health care premiums are projected to surge at the start of 2026. While both parties acknowledge the necessity to address escalating health care costs, the Democratic proposal lacks sufficient support from Republican senators to pass. Republicans argue that extending these subsidies would perpetuate what they term as "Obamacare waste, fraud, and abuse," ultimately benefiting insurance companies at the expense of taxpayers.
In response, Republicans are offering an alternative plan spearheaded by Senators Bill Cassidy (R-La.) and Mike Crapo (R-Idaho). This proposal would provide up to $1,500 a year in payments for health savings accounts aimed at Americans earning less than 700 percent of the federal poverty level. However, this GOP plan does not extend the ACA tax credits, and the funds cannot be utilized for paying health care premiums, which average around $7,000 in deductibles according to data from the health policy organization KFF.
Senate Majority Leader John Thune (R-S.D.) defended the Cassidy-Crapo plan, stating that it directs benefits to patients rather than insurance companies, thereby saving taxpayer money. However, the Democrats swiftly dismissed the GOP proposal, labeling it "dead on arrival." They criticized this plan for its limitations, particularly for restricting coverage to ACA marketplace plans that offer less comprehensive coverage. Additionally, the funds from the GOP plan cannot be allocated towards abortion services or gender reassignment.
During a press conference, Senate Minority Leader Chuck Schumer (D-NY) expressed his discontent with the GOP's approach, pointing out that the Cassidy-Crapo bill would not extend the ACA tax credits even for a single day. He highlighted that this lack of action is contributing to rising prices, with the GOP doing nothing to address the core issues. Furthermore, Sen. Jack Reed (D-R.I.) criticized the Republican leadership for delaying the unveiling of their health care plan, arguing that time was of the essence as 24 million Americans face the imminent loss of their subsidies.
Reed emphasized that instead of waiting until the last minute to propose a health care solution, the Republican Party could approve an extension of the Affordable Care Act tax credits now and address adjustments to the subsidies later. He concluded by stating, "There is no time to implement it," reinforcing the urgency of extending health care subsidies for those in need.