NEW YORK (AP) — Senators had a chance to tackle the expiring COVID-era health subsidies on Thursday, but both proposals were rejected. This means millions of Americans will face rising insurance costs starting in the new year. Many people reliant on the Affordable Care Act (ACA) could see their premiums more than double.
Health care affordability is a growing concern for American voters as they head into the midterm elections. Studies show that rising costs are critical issues that could sway votes.
Let’s break down the current situation regarding the subsidies, what’s at stake, and what the public thinks.
The ACA has provided health insurance for over 24 million people, including farmers and small-business owners. Those making less than 400% of the federal poverty level have been able to access permanent subsidies to help lower their premium costs.
In 2021, Congress increased these subsidies temporarily to help during the pandemic. If these “enhanced premium tax credits” expire, which they are set to do on January 1, recipients will take a hit. The average subsidized enrollee’s annual premium could jump from about $888 to $1,904 — an alarming 114% increase, according to the nonprofit KFF.
This spike in costs may lead some younger, healthier enrollees to drop their coverage altogether. A KFF poll shows that 1 in 4 enrollees might forgo insurance if their premiums double.
With the ACA enrollment period open until Monday for anyone needing coverage by January, the clock is ticking for Americans to make a choice.
The Democratic plan, led by Senator Chuck Schumer, aimed to extend these enhanced subsidies for three more years. This would offer relief to many, allowing those on the brink of dropping their coverage to stay insured. However, it would add nearly $83 billion to federal deficits in the next decade, a point of contention among many lawmakers.
On the other hand, Republicans put forth a proposal to reduce subsidies and create health savings accounts instead. This plan would give people under certain income levels $1,000 or $1,500 annually, based on their age, but the money couldn’t be used for premiums. Analysts have expressed concern that this wouldn’t help those struggling to afford insurance costs.
Ultimately, both proposals fell short of the 60 votes needed to pass.
The stalemate comes as lawmakers worry about the impact of rising premiums on the upcoming 2026 midterms. While Democrats may criticize Republicans for allowing the subsidies to become temporary, the GOP is still divided on how to proceed. Some moderate Republicans are urging a more reform-driven approach to extend the subsidies.
The White House even suggested a two-year extension of the subsidies with adjusted eligibility criteria, but this has faced tough resistance. Meanwhile, former President Trump proposed a completely different strategy involving financial support for individuals to buy their own coverage.
As these discussions continue, the uncertainty only grows, leaving many Americans anxious about their health care options in the coming year. The situation highlights not just a political battle but also the real-life impacts on everyday people trying to navigate their health care needs.
For further details, the KFF remains a reliable source for health care statistics and news updates. You can find more information [here](https://www.kff.org).
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Associated Press, AP Politics, AP Health, AP Washington news
