Photo: Michael Duva/Getty Images
On Monday morning, President Donald Trump was ready to extend Affordable Care Act subsidies; by Monday night, the plan was a no-go due to congressional backlash.
Trump planned to make an announcement as early as Monday proposing a framework to address healthcare costs that included an extension of Obamacare subsidies, Jake Traylor of NBC News posted on X.
Speaker Mike Johnson, R-La., led the opposition, arguing the program is irredeemable and needs a massive overhaul, if not outright repeal, said The Hill.
WHY THIS MATTERS
Major health insurer stocks were trading higher on Monday on the extension news, according to Seeking Alpha.
Trump’s plan reportedly extended ACA enhanced subsidies for another two years and would have placed new income levels on eligibility as well as set minimum premium payments.
Current subsidies expire at the end of the year, doubling the cost of ACA premiums for 2026.
Standard ACA premiums, which have been in place since the launch of ACA plans in 2014, remain. The enhanced subsidies became available during the COVID-19 pandemic and were extended past the end of the public health emergency.
The enhanced subsidies allow people within a higher income bracket to get ACA plans at lower premiums. They primarily help people who make too much to apply for Medicaid but do not get insurance through their employer, according to AJMC.
An estimated 24 million people are set to be affected by the rise in premiums should the enhanced subsidies expire. This could leave millions without coverage, which affects hospitals when uninsured individuals wait to seek care in the emergency room.
ERs represent a high cost for care, and hospitals are also expected to face a rise in uncompensated care.
THE LARGER TREND
Controversy over keeping the enhanced subsidies was the reason for the 43-day government shutdown.
Democrats caved on a promise from Senate Majority Leader John Thune, R-S.D., that a vote on the subsidies would be taken in December. Johnson made no such commitment.
Email the writer: SMorse@himss.org