WASHINGTON, D.C. — Thursday evening, the Republican-controlled House passed a Democratic-led three-year extension of COVID-era enhanced ACA subsidies.
Now, consumers are waiting to see what happens next.
Extending enhanced Affordable Care Act tax credits that expired on Dec. 31 has been a key reason for recent gridlock in Washington. The debate triggered last Fall’s government shutdown — and now, it’s back at center stage.
“The people’s House has just delivered a decisive victory for the American people,” said House Minority Leader Hakeem Jeffries, D-N.Y.
The Democratic measure passed thanks to support from over a dozen Republicans. If signed, it would keep the credits that bring down monthly costs for many enrollees in place for three more years.
But most Republicans voted against the extension.
“I do not support a three-year, clean extension,” said Rep. Nick Langworthy, R-N.Y. “This was COVID-era spending. This was emergency spending for an emergency, not a further subsidy to the insurance companies’ bottom line in perpetuity.”
Passing the narrowly divided House is only half the battle for the three-year extension of the COVID-era tax credits.
“In our view, the next step is to do what’s right for the American people, and John Thune needs to bring the bill to the floor next week for an up-or-down vote. The tax credits have already expired,” Jeffries said.
But in the Senate — where Republicans hold the majority, and where the three-year extension already failed to receive the 60 votes necessary to pass — the House’s measure is unlikely to pass as written.
Instead, Republican Sens. Bernie Moreno, R-Ohio, and Susan Collins, R-ME, unveiled the CARE Act — which caps income eligibility, eliminates zero-premium plans and offers what they call a “two-year glide path off COVID-era giveaways.”
“I’m open to any extension of the tax credits,” said Sen. Kirsten Gillibrand, D-N.Y. “I will eagerly look to see what Senator Moreno has proposed.”
Health policy analysts say for consumers, the key now is paying attention to what unfolds.
“I know normally once you’ve gone through open enrollment, you’ve picked your plan or made your decision, you can kind of forget about it. But this is not that year,” said Louise Norris, a health policy analyst at HealthInsurance.org. “Keep paying attention. See if Congress does anything. Be willing and ready to look back into your marketplace account. Even if you dropped your coverage, you might want to sign back up.”
The Senate could consider the compromise bill as soon as next week.
