A group of four moderate, bipartisan lawmakers unveiled a plan to temporarily keep subsidies of the Affordable Care Act, also known as Obamacare, which help people pay for health insurance on the government marketplace. Reps. Don Bacon, R-Neb., Tom Suozzi, D-N.Y., Jeff Hurd, R-Colo., and Josh Gottheimer, D-N.J., released a “statement of principles,” which is currently the only public proposal addressing the future of ACA subsidies since the government shutdown began.
“Congress is gridlocked, and too many Americans have lost faith that we can work together. But here’s the truth: Democrats and Republicans can sit down, listen to one another, and find common ground, especially when it comes to lowering health care costs,” the quartet of representatives said in a statement.
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Details of the plan
Their plan includes a built-in expiration date on the subsidies and an income cap for people earning between $200,000 and $400,000. Above that income threshold, people would no longer be eligible to benefit from the tax credits. Currently, anyone, regardless of income, can qualify for a subsidy if their health insurance premiums would otherwise cost more than 8.5% of their income.
The statement of principles also includes “guardrails” to ensure ACA insurance subsidies (APTCs) are going to the people who need them most, prevent fraud and make the process more transparent. The guardrails in the plan include stopping payments to ineligible or deceased people, holding brokers accountable and making it clearer to recipients how much help they’re getting.
Political context and response
The government shutdown began Oct. 1, causing 670,000 government workers to be furloughed and another 730,000 to work without pay.
Senate Democrats have said they want to make the enhanced Obamacare subsidies part of any shutdown-ending deal. President Donald Trump’s “Big Beautiful Bill,” which he signed in July, set an end date to those subsidies. In contrast, Republicans want to reopen the government first and negotiate with Democrats on the subsidies another time. However, Republicans may oppose extending the subsidies, arguing they cover up problems with the ACA.
“We may not agree on every ideal outcome, but we’ve identified a fair, reasonable path forward on the future of the Affordable Care Act’s enhanced premium tax credits. Compromise isn’t rocket science and it shouldn’t be treated like a weakness,” Bacon, Suozzi, Hurd and Gottheimer said in their statement. “Our hope is that this shared statement of principles will inspire bipartisan collaboration across Washington and help get Congress back to work for the American people.”
