With federal aid under the Affordable Care Act set to expire on Dec. 31, potentially raising premiums for millions of people, a health care proposal with broad support is urgently needed.
Medical costs could skyrocket as ACA subsidies expire
Millions are at risk of skyrocketing health costs in 2026 if Congress fails to extend health care subsidies.
WASHINGTON – House Republicans have announced a bill aimed at making health care more affordable, without extending premiums under the Affordable Care Act (also known as Obamacare), which Democrats had proposed.
With Obamacare subsidies set to expire on Dec. 31, lawmakers are scrambling to craft a health care program that can pass a narrowly divided Congress. Without the extension, insurance premiums for 24 million Americans are expected to double on average.
A House vote could take place next week. But lawmakers remain sharply divided over health care after Democrats’ demands to extend Obamacare led to the longest government shutdown in history.
Republicans oppose Obamacare, while Democrats advocate extending the subsidies for three years. With only a few days left in the year, the Senate rejected proposals from both parties on December 11th.
The House Rules Committee is scheduled to meet on Dec. 16 to decide whether to approve the proposed Obamacare subsidy extension and other amendments. A vote in the House could take place later this week.
But even if House Republicans were to unite behind the proposal, its chances are fading in the Senate. The bill would need support from 60 senators in a chamber that includes 53 Republicans and 47 Democrats.
The House Republican proposal aims to reduce costs and improve options for workers.
On the cost side, the bill would require pharmacy benefit managers to provide employers with binding information about prescription drug spending, rebates, and prescribing decisions regarding available drugs. The bill also promises to provide funding in 2027 to lower premiums, especially for low-income enrollees.
To provide more choice, this legislation would expand association health insurance plans by allowing employers to collaborate across industries to purchase affordable coverage.
The bill aims to protect small and medium-sized employers from catastrophic claims by making it clear that stop-loss insurance is not health insurance. And the bill would codify a 2019 rule that allows employees to buy their own insurance and pay for it with their pre-tax income.
House Speaker Mike Johnson (R-Louisiana) said in announcing the Republican proposal that Obamacare “destroyed America’s health care system” by raising premiums.
“Since its inception, premiums have soared, networks have shrunk, systems have become bloated and inefficient, and waste, fraud and abuse are rampant,” Johnson said.
But House Majority Leader Hakeem Jeffries (D-N.Y.) told MSNOW that the Republican bill “is likely to be a disaster and will not actually strengthen health care for the American people.”
Contributed by: Reuters
