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House Advances Bill to Restore ACA Subsidies as Premiums Spike Nationwide

A final House vote on a three-year reinstatement is expected this week.

Overview

  • Enhanced Affordable Care Act premium tax credits expired Jan. 1, driving sharp increases for marketplace enrollees, with KFF analyses pointing to average premium hikes of roughly 100% to 114% for millions.
  • The House voted 221-205 to discharge the Democratic bill, with nine Republicans backing the procedural move and setting up a floor vote to reinstate the enhanced credits for three years.
  • Senators in a bipartisan working group are drafting a shorter two-year plan that would add limits such as income caps up to 700% of the federal poverty level and minimum monthly premiums that would end $0 plans, alongside proposals tied to Health Savings Accounts.
  • Key flashpoints in the Senate talks include the minimum premium proposal, income eligibility, and abortion-related Hyde language, with negotiators saying a draft could be ready early next week and any deal requiring 60 votes.
  • The Congressional Budget Office estimates that letting the expanded aid lapse would leave about 100,000 more people uninsured each year and cut federal spending by $36 billion over a decade, while the House plan would cover 3.8 million more people and cost about $350 billion; open enrollment in most states closes Jan. 15.