Trump Weighs Two-Year Lifeline for Obamacare Subsidies Amid Soaring Health Costs
A White House draft circulating among senior officials lays out a plan that would keep Affordable Care Act subsidies in place for an additional two years, an effort aimed at shielding millions of Americans from sharp premium hikes when the current tax credits expire at year’s end.
The proposal indicates that President Donald Trump is considering extending a key piece of Obamacare even as Republicans continue searching for a long-term health care overhaul — an issue that has stumped the party for more than a decade. The administration emphasizes that nothing is final until Trump himself unveils a decision.
The subsidies, central to the Democrats’ stance during the recent shutdown standoff, were a major sticking point earlier this month. Many Democrat lawmakers refused to back any deal to keep the government running unless the existing tax credits were renewed without changes.
Under the working draft, eligibility for the expanded COVID-era subsidies would continue but with a ceiling of 700% of the federal poverty level, according to two individuals familiar with the discussions who spoke to The Associated Press on condition of anonymity. The original Affordable Care Act capped eligibility at 400%, a limit suspended during the pandemic to widen access to middle- and upper-middle-income households.
The White House is also eyeing a universal premium requirement for anyone enrolled in an Obamacare plan. Every participant — even those on the lowest-tier plans — would need to contribute something toward monthly coverage. One idea being considered is a 2% income contribution or a minimum charge of $5 per month, a move Republicans argue is necessary to prevent abuse in a system that currently permits zero-premium plans for some low-income enrollees.
The possibility of maintaining any piece of President Barack Obama’s landmark law is expected to infuriate segments of the conservative base, which has spent years pushing to scrap the Affordable Care Act entirely.
“Until President Trump makes an announcement himself, any reporting about the administration’s health care positions is mere speculation,” White House spokesman Kush Desai said Monday.
White House press secretary Karoline Leavitt added that Trump “is very much involved in these talks” and is “focused on unveiling a health care proposal that will fix the system and will bring down costs for consumers.”
Despite early conservative frustration, initial signs point to potential bipartisan traction. Sen. Maggie Hassan of New Hampshire — one of the Democrats who voted to reopen the government in the recent shutdown episode — said the emerging White House framework “represents a starting point for serious negotiations.”
She argued that Trump’s willingness to consider an extension reflects the stakes. “The fact that President Trump is putting forward any offer at all to extend the Affordable Care Act’s tax credits shows that there is a broad understanding that inaction in this regard will cause serious harm to the American people,” Hassan said.
Back in 2017, Trump came up short in a high-profile attempt to dismantle Obamacare, exposing deep divisions among Republicans who otherwise controlled Washington. The party has not agreed on a cohesive replacement plan since, but the looming deadline for the pandemic-era subsidies gives Trump a fresh opening to reshape the health care landscape.
While the White House has been developing its proposal behind the scenes through the Domestic Policy Council, lawmakers have begun crafting alternatives of their own. Senators Rick Scott of Florida and Bill Cassidy of Louisiana are among those floating ideas to shift federal subsidy dollars into health savings accounts that consumers could use to purchase plans or cover medical expenses.
The administration’s draft would allow people enrolled in bronze-level or catastrophic plans to make contributions to health savings accounts, expanding an option typically restricted to higher-deductible insurance.
Another element under consideration is formally adopting the “program integrity rule,” an enforcement tool designed to better target fraud and misuse in the system.
The urgency behind negotiations is rising as Americans shopping for coverage are already confronting steep price increases. Open enrollment for next year began on November 1, and without new action from Congress, subsidized consumers are expected to see their premiums more than double, according to an analysis by the nonprofit health research group KFF.
Voters have made clear that health care affordability remains a top concern. Recent polls show it ranking alongside broader cost-of-living issues — themes that helped propel Democrats to victories in this month’s elections as they capitalized on economic frustrations nationwide.
{Matzav.com}
