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1h ago

Government Shuts Down Over Stalemate on ACA Subsidy Extension

Democrats rejected a stopgap without the enhanced credits, citing KFF warnings of a 114% jump in average out-of-pocket premiums next year for current recipients.

House Democrats prepare to speak on the steps of the Capitol to insist that Republicans include an extension of expiring health care benefits as part of a government funding compromise, in Washington, Tuesday, Sept. 30, 2025. (AP Photo/J. Scott Applewhite)
People sign up for health insurance through Covered California at the Asian Health Services offices in Oakland in January 2017. Nearly 1.7 million Californians could soon face steep increases in Covered California premiums if Congress does not extend federal subsidies.
Senate Minority Leader Chuck Schumer, D-N.Y., turns to Sen. Brian Schatz, D-Hawaii, while speaking with reporters as the government lurches toward a shutdown if the Senate does not pass a House measure that would extend federal funding for seven weeks, at the Capitol in Washington, Tuesday, Sept. 30, 2025. (AP Photo/J. Scott Applewhite)
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Overview

  • Senate Democrats voted down a House stopgap funding bill that omitted an extension of pandemic-era Affordable Care Act premium tax credits.
  • Republican leaders said they will negotiate on the subsidies after the government reopens, while Democrats insist the issue be addressed in the funding measure.
  • KFF estimates subsidized enrollees would see average annual premiums rise from about $888 to roughly $1,906 in 2026 if the enhancements expire, with insurers also seeking a median 18% rate increase.
  • Democrats are also pushing to roll back Medicaid cuts from Republicans’ summer legislation, as the CBO projects about 10 million more uninsured over the next decade under those policies.
  • Pressure is intensifying with ACA open enrollment beginning Nov. 1 and insurers and states preparing notices that signal higher costs and potential coverage disruptions.