Congress Struggles to Pass Deal, Leaving ACA Subsidies at Risk
Lawmakers are racing against time to reach a deal on extending enhanced Affordable Care Act subsidies, but negotiations have hit a roadblock. The current subsidies were expanded during the pandemic to mitigate rapidly rising health insurance premiums and will expire in less than a month.
Initially, a shutdown-ending deal reached between Republicans and defectors in the Democratic Party seemed like a way to give both sides breathing room for bipartisan talks on an extension. However, lawmakers have since focused on familiar battles, leaving millions of Americans facing steep premium hikes come January.
Democrats had signaled their willingness to negotiate limits on subsidies, but discussions stalled almost immediately. The Republican side has insisted that any extension must revisit abortion-related restrictions in ACA marketplace plans, a demand Democrats see as unnecessary and designed to fracture their caucus.
Senate Independent Angus King warned that the GOP's "red line" is also a "red line for the Democrats," suggesting that the party is trying to freeze negotiations before substantive talks even begin. The lack of clear direction from President Donald Trump has further complicated the situation, with some Republicans pushing for new health savings accounts or income caps on existing subsidy structures.
Conservatives are also urging leadership to let the subsidies collapse, citing a desire to force a reckoning with what they consider a broken law. This approach is seen as a bridge too far by many Republican members, who fear it would lead to primary challenges and damage their party's reputation in competitive districts.
Trump has oscillated between disinterest and acknowledgment that a short-term extension might be necessary, but no concrete plan has been released by the White House. Democrats are preparing for a vote on the Senate floor next week, even though it is likely to fail.
"It's in the hands of Donald Trump and the Republicans," said Senator Amy Klobuchar, "but we will keep pushing."
Lawmakers are racing against time to reach a deal on extending enhanced Affordable Care Act subsidies, but negotiations have hit a roadblock. The current subsidies were expanded during the pandemic to mitigate rapidly rising health insurance premiums and will expire in less than a month.
Initially, a shutdown-ending deal reached between Republicans and defectors in the Democratic Party seemed like a way to give both sides breathing room for bipartisan talks on an extension. However, lawmakers have since focused on familiar battles, leaving millions of Americans facing steep premium hikes come January.
Democrats had signaled their willingness to negotiate limits on subsidies, but discussions stalled almost immediately. The Republican side has insisted that any extension must revisit abortion-related restrictions in ACA marketplace plans, a demand Democrats see as unnecessary and designed to fracture their caucus.
Senate Independent Angus King warned that the GOP's "red line" is also a "red line for the Democrats," suggesting that the party is trying to freeze negotiations before substantive talks even begin. The lack of clear direction from President Donald Trump has further complicated the situation, with some Republicans pushing for new health savings accounts or income caps on existing subsidy structures.
Conservatives are also urging leadership to let the subsidies collapse, citing a desire to force a reckoning with what they consider a broken law. This approach is seen as a bridge too far by many Republican members, who fear it would lead to primary challenges and damage their party's reputation in competitive districts.
Trump has oscillated between disinterest and acknowledgment that a short-term extension might be necessary, but no concrete plan has been released by the White House. Democrats are preparing for a vote on the Senate floor next week, even though it is likely to fail.
"It's in the hands of Donald Trump and the Republicans," said Senator Amy Klobuchar, "but we will keep pushing."