Senate GOP Stops Bill for Health Insurance Subsidies

Article Summary –

The Republican-majority U.S. Senate blocked a Democratic bill led by Minority Leader Chuck Schumer that aimed to extend the advance premium tax credit, benefiting 22 million Americans, with a vote of 51-48, falling short of the required 60 votes. In response, Republicans proposed an alternative bill to replace the tax credits with health savings account subsidies for catastrophic health insurance plans, which also failed to pass. Public opinion, as reflected in a KFF Health Tracking Poll, shows that 74% of Americans support extending the enhanced premium tax credits, while former President Trump opposed any extension, advocating for direct financial returns to individuals instead.

The Republican-controlled U.S. Senate halted a Democratic proposal on Dec. 11 to extend a crucial tax credit aiding 22 million Americans with health insurance premiums.

The Senate voted 51-48 against the Lower Health Care Costs Act, led by Minority Leader Chuck Schumer (D-NY). The bill sought to extend the advance premium tax credit for three years but fell short of the 60 votes needed. Initially enacted under President Biden, the credit is set to expire at the end of 2025.

Michigan Democratic Sens. Gary Peters and Elissa Slotkin supported the initiative.

Slotkin warned in an October press release that if the enhanced premium tax credits lapse, it could trigger a severe health care crisis in Michigan. “A 60-year-old couple earning $85,000 annually will see a 235% premium rise,” Slotkin noted, adding that some Michiganders might face nearly 400% increases.

Starting Jan. 1, Michiganders buying insurance via the marketplace will encounter a premium hike averaging over 20%.

A KFF Health Tracking Poll showed in November that 74% of Americans want Congress to extend the tax credits.

President Donald Trump opposed the extension, stating on Nov. 18 via Truth Social: “THE ONLY HEALTHCARE I WILL SUPPORT IS DIRECTLY RETURNING THE MONEY TO THE PEOPLE, NOT THE BIG INSURANCE COMPANIES.”

Republicans also voted 51-48 for a plan by Sens. Bill Cassidy (R-LA) and Mike Crapo (R-ID), which also failed. This proposal aimed to replace tax credits with health savings account subsidies for catastrophic health insurance plans.

“Let’s empower the patient, not profit the insurance company,” Cassidy urged in a Dec. 4 speech. “Let’s make health care affordable again!”

“Their bill is junk insurance,” Schumer said on Dec. 9. “It misleads, blocks ACA tax credits, and burdens people. We must call it out: misdirection, smoke and mirrors.”