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White House Circulates Two-Year ACA Subsidy Extension Plan With New Limits

Key details remain unsettled after conservative pushback, with a Senate vote on subsidies slated for mid-December.

Overview

  • The draft framework, described by multiple outlets, would temporarily extend enhanced Affordable Care Act tax credits for about two years to blunt projected premium spikes.
  • Reported guardrails include restoring an income cap — cited at roughly 700% of the federal poverty level — and requiring a minimum monthly payment that would end $0-premium plans.
  • The plan under discussion also features an incentive allowing enrollees who choose lower-cost exchange coverage to direct part of their subsidy into a health savings–style account.
  • The White House stresses that nothing is final until President Trump announces it, and coverage notes parts of the proposal are in flux following pushback from conservative Republicans.
  • The shutdown-ending deal commits Senate leaders to a mid-December vote on subsidies, and insurer shares rose Monday on reports of a potential extension as analysts warn premiums could more than double if aid lapses.