Topline
Subsidies for the Affordable Care Act, a key issue that prompted Democrats to shut down the government for 43 days, are set to expire in January, and Republicans are reportedly considering multiple plans to address the upcoming shortfall that could force millions of Americans with Obamacare plans to pay much higher premiums.
Over 24 million Americans are enrolled in marketplace insurance plans, and more than 22 million qualify for the subsidies that help cover rising premium costs.
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Key Facts
Multiple outlets reported Monday the White House was hoping to unveil a proposal to address the end of the ACA subsidies soon, but officials told Reuters and CNN there would be no announcement on Monday.
Republicans were mulling a plan that would offer Democrats a two-year extension of the credits in exchange for new restrictions that would include income caps on enrollees, Politico first reported, limiting the funds for people making up to 700% of the federal poverty line.
A White House spokesperson told multiple outlets that the reporting was “mere speculation.”
Premiums for marketplace insurance purchased through the ACA could more than double on average in January without an extension of the credits, an analysis from health policy research firm KFF found.
Over 24 million people are currently enrolled in marketplace insurance, and more than 22 million qualify for the tax credits, according to KFF.
The White House did not comment on when a future announcement could happen when contacted by Forbes.
Key Background
The dispute over the future of Obamacare subsidies prompted Democrats to refuse to vote for a continuing resolution to fund the government in September, leading to the longest government shutdown in U.S. history. Earlier this month, eight Democratic senators broke with the rest of their party and voted to end the government shutdown. Most of this group only did so after receiving assurances from Senate Majority Leader John Thune, R-S.D., that the Senate would vote on the subsidies by mid-December. This deadline coincides with the December 15 enrollment deadline for 2026 ACA plans purchased through Healthcare.gov, although some state exchanges have later deadlines.