Summary
Congress is facing a deadline to address the expiration of federal subsidies that help reduce health insurance costs for many Americans. Several plans and proposals are on the table, but there is disagreement among lawmakers, especially regarding the extent and form of these subsidies. The subsidies affect people who get their insurance through the Affordable Care Act exchanges and will expire soon unless Congress acts.
Key Facts
- Enhanced premium tax credits (PTCs) for ACA exchanges are set to expire in about 22 days.
- These subsidies help lower health insurance premiums for millions.
- If not extended, premiums could more than double by 2026 for those currently receiving subsidies.
- Those earning more than 400% of the federal poverty level could lose subsidies without action.
- Proposals include extending subsidies, reforming them with income limits, or switching to health savings accounts (HSAs).
- Senate Republican Leader John Thune suggests HSAs, while Democratic leaders propose extending current subsidies.
- The Bipartisan Health Insurance Affordability Act extends subsidies for two years with an income limit at 700% of the poverty level.
- The Democrats propose a three-year extension without an income limit.
