Millions face skyrocketing health insurance costs unless Congress extends subsidies

"There's bipartisan support in Congress for extending tax credits that have made health insurance more affordable for millions of people since the COVID-19 pandemic. But the credits are in danger of expiring as Republicans and Democrats clash over how to do it. Democrats are threatening to vote to shut down the government at the end of the month if Republicans don't extend the subsidies, which were first put in place in 2021 and extended a year later when they controlled Congress and the White House."

"The tax credits, which are slated to expire at the end of the year, go to low- and middle-income people who purchase health insurance through the Affordable Care Act. Some Republicans who have opposed the health care law since it was enacted under President Barack Obama are suddenly open to keeping the tax credits. They acknowledge that many of their constituents could see steep hikes in coverage if the subsidies are allowed to lapse."

"Still, the two sides are far apart. Republicans are divided, with many firmly opposed. GOP leaders in the House and Senate have been open but noncommittal on the extension, and many of those Republicans who say they support it argue that the tax credits should be reworked potentially opening up a new health care debate that could take months to resolve."

Congress faces a showdown over extending tax credits that have made Affordable Care Act premiums more affordable since 2021. The credits are scheduled to expire at year-end, threatening higher costs for low- and middle-income people who buy coverage through the ACA. Some Republicans who previously opposed the law now acknowledge constituent exposure to steep premium hikes, while many GOP members remain divided or oppose extensions without reworking the credits. Democrats insist on preserving current subsidies and have threatened a government shutdown if extensions are not enacted. The impasse raises the likelihood of prolonged debate and creates uncertainty for insurers, hospitals, states and millions enrolled.

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