According to Bloomberg on Tuesday, December 2, as the two parties in Congress once again reach a deadlock on the health care bill, the subsidies for Affordable Care Act (also known as Obamacare, ACA) are likely to expire at the end of December.
The Kaiser Family Foundation, a health research institution, stated that this move could result in more than 20 million Americans facing an average increase of 114% in health insurance premiums starting from January 1, 2026, with some policyholders facing a doubling or even tripling of costs.
The deadline for extending health insurance subsidies is December 31, 2025, as President Biden’s tax credits for the COVID pandemic will come to an end. This fall, the two parties failed to reach a compromise on the health care issue, leading to the longest government shutdown in American history.
The Senate is expected to vote on the Democrats’ proposal to extend health insurance subsidies next week, but with the Republicans having strongly expressed opposition, the vote is likely to fail.
Currently, negotiations between the two parties have stalled. In the Senate, any proposal needs to pass a threshold of 60 votes to progress further. The initial White House proposal for a two-year extension has been put on hold due to internal party opposition.
Senate Minority Leader Chuck Schumer referred to this as “leading Americans into a healthcare crisis” on Tuesday.
Meanwhile, there are divisions within the Republican Party regarding whether to propose their own alternative and the specifics of such a plan.
Conservatives are pushing for major reforms, allowing people to choose lower-cost, narrower coverage insurance plans to replace the ACA exchange plans. Some supporters of ACA fear this could lead to the collapse of the system, and states are unlikely to quickly follow suit in implementing reforms.
Moderates have suggested extending the ACA subsidies for two years but with income restrictions for beneficiaries and anti-fraud measures, along with an extension of the open enrollment period.
Congress will begin its recess on December 19. If no legislation is passed, it would mean the end of ACA subsidies by the end of the month, the closure of the open enrollment period, and the reality of policyholders facing premium hikes.
Republican Senator Roger Marshall expressed hope for a bipartisan agreement by the end of January.
The White House did not respond on Tuesday regarding inquiries about whether the Obamacare plan would be permanently put on hold.
President Trump hinted during Tuesday’s cabinet meeting that he does not support extending Obamacare.
Trump mentioned that changes would be made to health care policies but without Democratic support, it may not be easy to achieve.