There are growing calls among congressional Republicans for their party to address expiring Affordable Care Act (ACA) tax credits before a critical deadline if they hope to avoid a major hike in health insurance rates, as the issue remains at the center of the ongoing government shutdown. Some GOP lawmakers warn that failing to act may mean Republicans lose complete control of Congress in next year’s midterms.
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Midterm impacts
“I think the reality is, if costs go up under our control, it could have an impact on us,” Republican Rep. David Valadao of California told CNN. I get that there’s some in leadership who don’t like hearing it, but there’s no denying it. Just watching rates go up and pointing fingers is not what we should be doing in our position,” he added.
Valadao is among a number of House and Senate members who have begun drawing up their own plans to provide a fix for expiring “Obamacare” subsidies, which provide assistance for millions of Americans struggling to afford health insurance. That includes some GOP lawmakers who are calling on party leaders, including President Donald Trump, to ensure the tax credits through 2025.
Democrats not budging amid shutdown
Congressional Democrats have made extending the tax credits a linchpin of their demands as they’ve rejected a dozen attempts by Senate Republicans to pass a House bill that would reopen the government until Nov. 21 without extending health care subsidies. Many Republicans have taken the stance that there should be no talks about the tax credits until after the shutdown ends. But some are urging GOP leadership to rethink that.
“I think it’s time for both Republicans and Democrats to be sitting down together to talk about how do we end this impasse?” Republican Sen. Lisa Murkowski of Alaska said. She added that Trump’s direct involvement in the negotiations would “certainly help.”
Rep. Jeff Van Drew, R-N.J., told CNN that he recently discussed the ongoing shutdown with the president over the phone and said Trump made it apparent that “he doesn’t want to hurt people.”
“His concern is, is there something better we can do? Van Drew said, while noting that he told Trump that he didn’t “think we’re going to get it done in a matter of weeks.”
“It’s morally bankrupt not to do it, and it is politically stupid,” Van Drew added.
MAGA Republicans break with party over subsidies
His comments come as GOP lawmakers like Rep. Marjorie Taylor Greene, R-Ga., and Sen. Josh Hawley, R-Mo., demand action on behalf of GOP leadership to address the issue before health care premiums spike for millions of Americans.
“If we don’t do anything, their premiums are gonna almost double,” Hawley said. “They’re too high right now. We’re talking about working people. So it’s just, we’ve got to do something. This is totally unaffordable.”
Premiums already on the rise
The looming price hikes come as health insurance premiums for job-based coverage have already risen 6% in 2025, which represents the steepest increase in two decades, according to KFF findings. The average annual premium for a family’s job-based health insurance is now reportedly nearly $27,000, about the same as a new Toyota Corolla hybrid.
ACA open enrollment launches on Nov. 1, which is the designated “critical deadline” for congressional lawmakers to come up with an agreement to halt health insurance premium hikes.
