Congress Fails to Extend Obamacare Subsidies, Premiums Expected to Surge
Obamacare subsidies are set to expire on December 31, 2025, after Congress failed to extend the enhanced credits.
Approximately 20 million people rely on these credits, and as they lapse, premiums are expected to rise sharply. The Kaiser Family Foundation projects that average out-of-pocket costs could double, with some groups facing increases as high as 361%.
Senate Democrats pressed for a bipartisan extension, but the effort failed in the Senate despite some Republican support for Senate Majority Leader Chuck Schumer's plan.
In the House, two tracks are emerging: a GOP bill that does not address the subsidies and a bipartisan three-year extension proposal that is gaining momentum for a floor vote.
Senate Majority Leader John Thune opposes a simple three-year extension, labeling it an $83 billion waste and criticizing it for lacking needed reforms, including an income cap, anti-fraud provisions, and abortion-funding language.
Senator Brian Schatz mentioned there is a “glimmer of hope” for a bipartisan three-year extension that could pass if House leaders agree and ensure taxpayer relief.
Democrats emphasize negotiating a bipartisan approach but insist on safeguards against junk insurance and related funding changes, with Senator Ron Wyden signaling reluctance to concede on protections.
Senators Collins and Moreno reportedly held a meeting with lawmakers on a bipartisan approach as momentum builds in favor of a three-year extension.
These developments unfold amid a looming government funding deadline on January 30 and an ongoing partisan impasse over overall government funding and healthcare subsidies.
