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ACA Subsidy Standoff Deepens as Shutdown Drags On

A KFF poll shows strong public backing for extending the enhanced tax credits.

Overview

  • The enhanced Affordable Care Act premium tax credits are still set to expire on December 31 with no legislative deal in place as open enrollment proceeds.
  • A bipartisan House outline proposes a two-year extension with eligibility verification and a phased income cap, but resistance from GOP fiscal conservatives threatens the effort.
  • The federal shutdown has become the longest on record, with the fight over the subsidies cited as a central sticking point in budget talks.
  • Analysts warn of steep cost and coverage fallout if the credits lapse, including KFF’s estimate that a 60-year-old couple earning $85,000 could face premiums above $22,600 and projections from CBO and nonprofits of 3.6–4.8 million losing affordable coverage.
  • Insurers are preparing for disruption, with Centene warning of large enrollment losses and UnitedHealthcare expecting to shed about two-thirds of its ACA enrollees while enacting targeted service-area reductions.