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Senate Confronts ACA Subsidy Extension After House Vote as Republicans Press Market Reforms

Pressure is building to attach fraud safeguards as watchdogs detail enrollment abuses.

Overview

  • The House recently passed an extension of the COVID-era ACA premium subsidies with some Republican support, putting the decision before the Senate.
  • Republican lawmakers and conservative commentators urge pairing or replacing an extension with Pharmacy Benefit Manager reforms, broader Association Health Plans, and expanded Health Savings Accounts.
  • Federal watchdog findings fuel integrity demands, citing roughly 275,000 CMS enrollment complaints in 2024 and GAO tests that approved most fake applicants for coverage.
  • Critics say subsidies have not curbed costs, noting an estimated $138 billion in insurer receipt of premium subsidies last year and individual-market premiums nearly tripling since 2013.
  • Sen. Rand Paul promotes a plan to expand AHPs and open HSAs to all Americans with higher contribution limits and wider eligible expenses.