Article Summary –
Enhanced tax credits under the American Rescue Plan Act, which lowered premiums for those buying insurance through ACA marketplaces, will expire at year-end, potentially increasing costs by 26% on average for 22 million Americans unless Congress acts. Republican opposition to extending these credits primarily focuses on abortion coverage, with figures like Sen. Mike Rounds emphasizing the party’s stance against taxpayer-funded abortion services, while some Republicans suggest alternatives like directing funds to health savings accounts. Democratic lawmakers argue against repealing the credits without replacements and accuse Republicans of lacking a plan to reduce healthcare costs, highlighting the continued polarization over healthcare policy and abortion rights.
Enhanced tax credits from the American Rescue Plan Act of 2021, which have subsidized premiums for health insurance bought via Affordable Care Act marketplaces, are set to expire by year-end.
Without Congressional renewal, 22 million Americans could face steep health insurance cost hikes. KFF indicates ACA marketplace insurance costs may rise 26% on average in 2026.
On Nov. 18, President Donald Trump urged Congress in a social media post to focus on returning money directly to people rather than insurance companies.
NBC News reported Republican resistance to renewing these tax credits, although some Republicans, like Virginia Rep. Jen Kiggans, cautioned that expiration could harm constituents.
Democrats face challenges from Republicans opposing abortion coverage in ACA marketplace plans. Republican Sen. Mike Rounds remarked, as per Washington Post, that taxpayer funds should not support abortions.
Though the Hyde Amendment restricts federal abortion funding, some states mandate ACA plans cover abortions using state funds, KFF reports. Meanwhile, 25 states ban abortion coverage in ACA plans.
Anna Bernstein of the Guttmacher Institute discussed the anti-abortion movement’s push for greater restrictions, potentially eliminating marketplace abortion coverage.
Marjorie Dannenfelser, president of Susan B. Anthony Pro-Life America, in a letter, warned Republican senators against supporting ACA subsidies due to abortion coverage issues.
Louisiana Sen. Bill Cassidy proposed replacing ACA subsidies with direct payments to individuals’ health savings accounts, encouraging enrollment in lower-premium plans with higher deductibles, aligning with President Trump’s ideas, as reported by Politico.
Sen. Tammy Baldwin emphasized in an email to the American Independent the need for affordable healthcare over partisan fighting. David Cohen of Drexel University criticized Republicans’ continued emphasis on abortion restrictions.
—
Read More Wisconsin News
