Senate Clashes on ACA Subsidy Extensions

Senate Republicans and Democrats are set to clash Thursday over the fate of enhanced Affordable Care Act subsidies, as lawmakers hold dueling floor votes on competing proposals amid warnings that millions of Americans face sharp premium increases if no action is taken by year's end.

The Democratic measure calls for a straightforward three-year extension of the pandemic-era tax credits, which have helped about 24 million people afford health insurance through the ACA marketplaces. These subsidies, first enacted in 2021 and extended through this year, eliminate income caps and provide robust assistance to lower premiums. Without renewal, the Congressional Budget Office estimates premiums could rise by an average of 114 percent in 2026, potentially leaving 2.2 million more people uninsured that year and up to 3.8 million annually over the next decade.

In response, Senate Republicans, led by Majority Leader John Thune of South Dakota, plan to advance the Health Care Freedom for Patients Act, sponsored by Senators Bill Cassidy of Louisiana and Mike Crapo of Idaho. The bill would allow the enhanced subsidies to expire on December 31 and instead deposit funds into health savings...