Article Summary –
Enhanced tax credits under the American Rescue Plan Act, which have subsidized health insurance premiums through ACA marketplaces, are set to expire at the end of the year, potentially increasing costs by 26% for 22 million Americans unless Congress renews them. The debate over renewing these credits is intensified by Republican opposition to funding ACA plans that cover abortion, with GOP members emphasizing they won’t support extensions unless abortion coverage is restricted, despite federal funding for abortion being prohibited by the Hyde Amendment. Proposed alternatives, like Sen. Bill Cassidy’s plan to shift subsidies to health savings accounts, reflect broader Republican efforts to alter the ACA framework, while Democrats highlight the impact on affordability for constituents.
Enhanced tax credits from the American Rescue Plan Act of 2021, which subsidize premiums for those buying health insurance through Affordable Care Act (ACA) marketplaces, will expire by year-end.
If Congress doesn’t renew these credits, about 22 million Americans face steep health insurance cost hikes. Per KFF, without subsidies, ACA marketplace insurance costs will average a 26% increase starting in 2026.
On Nov. 18, President Donald Trump urged Congress on social media to avoid health care efforts except for “SENDING THE MONEY DIRECTLY BACK TO THE PEOPLE,” criticizing rich insurance companies for profiting excessively.
NBC News reported most Congressional Republicans oppose extending enhanced tax credit funding, though some, like Virginia Rep. Jen Kiggans and Pennsylvania Rep. Rob Bresnahan, acknowledge harm to constituents if credits expire without alternatives.
Democratic lawmakers face Republican resistance over ACA marketplace plans covering abortion care. Republican Sen. Mike Rounds of South Dakota told the Washington Post tax funds shouldn’t support abortions, noting Republican unity on this issue.
While federal abortions are limited by the Hyde Amendment since 1976, some ACA plans in states like California and New York cover abortions using state funds, reports KFF. However, 25 states prohibit ACA plans from covering abortions.
Anna Bernstein from the Guttmacher Institute highlighted a strong anti-abortion push aiming to eliminate marketplace abortion coverage, impacting private insurance broadly.
Marjorie Dannenfelser of Susan B. Anthony Pro-Life America, in a letter to GOP senators, opposed ACA subsidies’ “clean” extension, linking it to abortion funding.
Louisiana Republican Sen. Bill Cassidy proposed replacing ACA subsidies with direct payments to health savings accounts, encouraging ACA enrollees to switch to lower-premium, higher-deductible plans.
Despite restrictive abortion coverage, Bernstein noted uncertainty about further limitations, especially in the ACA marketplace.
In an email, Wisconsin Democratic Sen. Tammy Baldwin criticized Republicans’ lack of a plan to reduce healthcare costs, accusing them of risking higher premiums for 22 million people.
David Cohen from Drexel University’s School of Law criticized Republicans for focusing on abortion restrictions, conflicting with American public opinion.
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