Sen. Jeanne Shaheen (D-N.H.) and Rep. Lauren Underwood (D-Ill.) led a letter sent Wednesday to bipartisan leaders in both chambers urging them to act “at the next possible legislative opportunity.” It was signed by 41 Senate Democrats and 154 House Democrats.
“Extending [the subsidies] is essential to preventing a sudden increase in out-of-pocket costs and preserving the largest expansion of coverage since the Affordable Care Act (ACA) was signed into law more than a decade ago,” the letter read.
“By including provisions to extend the enhanced [premium tax credits] in the soonest possible legislative opportunity and creating a pathway for making them permanent, we can finish the job for the American people and keep quality health care within reach for our constituents.”
The enhanced subsidies, put into effect during the height of the coronavirus pandemic, increase financial help to low-income individuals who qualify for plans with cheap, or even zero-dollar premiums.
The expiration date is still more than a year away, but it will be the next big ObamaCare fight in Congress. As KFF noted, insurers and regulators will want to know the fate of those subsidies well in advance to set accurate premiums for 2026.
And the health care industry is pushing to preserve the subsidies, with a new coalition launching last week that includes the Federation of American Hospitals, Families USA, AARP and the insurance lobby America’s Health Insurance Plans (AHIP).
While the subsidies have boosted insurance coverage to record highs, maintaining them permanently would increase the deficit by $335 billion over the next 10 years, according to the Congressional Budget Office. Republicans argue the price tag is too big and too many high earners are benefitting from taxpayer-subsidized insurance.
