The 13 vulnerable House Republicans, including leaders Jen Kiggans and Jeff Van Drew, have written a letter to Speaker Mike Johnson calling for an immediate focus on extending Obamacare subsidies following the government’s reopening. The lawmakers, recognizing that millions of Americans face skyrocketing health insurance costs due to the expiration of subsidies at year-end, are urging Johnson to take a decisive action. They emphasize the urgency of the situation, highlighting that leaving the tax credits to lapse without a clear path would pose significant risks to those who depend on the healthcare programs. Furthermore, they argue that the Republicans must not cave in to Democratic demands to extend the subsidies during the government shutdown, but instead help the party ‘chart a conservative path’ with the credits after the shutdown.
Although the moderate members agree with their conservative colleagues that changes are needed, they also caution against any move that might compromise the party’s position on healthcare. The letter underscores the importance of ensuring these credits are fiscally responsible and directed to those who need them most. As the government funding standoff extends for a few more days, the letter signals growing GOP anxiety over the issue as November 1, the start of the Affordable Care Act’s open enrollment period, fast approaches. This date is particularly crucial because insurance companies have already factored in an expectation of the tax credits’ expiration, making a last-minute extension difficult. State insurance officials have warned that an expectation of the enhanced tax credits’ expiration has already been baked into updated insurance rates, and it will be difficult to update those rates if Congress passes an extension in November or December.
Meanwhile, Kiggans introduced a bill in September that would extend the subsidies for a year, with the support of 28 co-sponsors, equally divided between the two parties. Twelve of the signers of the Johnson letter are supporters of the Kiggans measure. The lawmakers are also engaging in discussions about potential changes to the structure of the tax credits, including instituting new minimum out-of-pocket premiums and imposing an income cap for eligibility. Conversations have already started around pairing an extension of the enhanced Affordable Care Act tax credits with conservative healthcare policy priorities. However, many hard-liners remain dug in against any extension, which Republicans across the political spectrum caution would be a political mistake heading into the midterms.
With no resolution in sight to the 21-day government funding standoff between the two parties, the letter signals mounting GOP anxiety about the issue as November 1 fast approaches. That’s the date for open enrollment in plans under the Affordable Care Act, at which point it might be too late to avoid massive premium hikes. The Republicans said in their letter that they agree with their conservative colleagues that changes are needed: ‘Let us be clear: significant reforms are needed to make these credits more fiscally responsible and ensure they are going to the Americans who need them most.’
Conversations have already started around pairing an extension of the enhanced Affordable Care Act tax credits with conservative health care policy priorities. There are discussions about making changes to the structure of the tax credits themselves, for instance instituting new minimum out-of-pocket premiums for all enrollees and imposing an income cap for eligibility. House GOP leaders are engaged in early, informal conversations with White House officials about potential changes, too. Still, many hard-liners remain dug in against any extension, which Republicans across the political spectrum caution would be a political mistake heading into the midterms.
The Republicans said in their letter that they agree with their conservative colleagues that changes are needed: ‘Let us be clear: significant reforms are needed to make these credits more fiscally responsible and ensure they are going to the Americans who need them most.’ But with no resolution in sight to the 21-day government funding standoff between the two parties, the letter signals mounting GOP anxiety about the issue as November 1 fast approaches. That’s the date for open enrollment in plans under the Affordable Care Act, at which point it might be too late to avoid massive premium hikes.
State insurance officials have warned that an expectation that the enhanced tax credits will expire has already been baked into updated insurance rates, and it will be difficult to update those rates if Congress passes an extension in November or December.
Kiggans introduced a bill in September that would extend the subsidies for a year, which currently has the support of 28 co-sponsors, equally divided between the two parties. Twelve of the signers of the Johnson letter are supporters of the Kiggans measure.