Senate GOP Halts Bill Renewing Health Insurance Subsidies

Article Summary –

The Republican majority in the U.S. Senate blocked a Democratic bill aimed at extending the expiring advance premium tax credit designed to help 22 million Americans afford health insurance, which failed to secure the necessary 60 votes, receiving only 51. A competing Republican bill proposed by Sens. Cassidy and Crapo, which also failed, sought to replace these credits with health savings account subsidies for catastrophic health insurance, emphasizing patient empowerment over insurance company profits. Public opinion, as noted in a KFF Health Tracking Poll, shows significant support (74%) for extending the ACA tax credits, while former President Trump opposed any extension, advocating for direct payments to the public instead of subsidies to insurance companies.

A Democratic bill aimed at extending a key tax credit to help 22 million Americans with health insurance was blocked by the Republican-led U.S. Senate on Dec. 11.

The vote ended 51-48 for the Lower Health Care Costs Act, championed by Minority Leader Chuck Schumer (D-NY), but fell short of the 60 votes required. The bill sought to prolong the advance premium tax credit for three more years, currently set to expire in 2025.

Sen. John Fetterman of Pennsylvania supported the measure, while Sen. David McCormick opposed it.

“I support the three-year extension,” Fetterman mentioned on Dec. 10, although he acknowledged its likely defeat.

Opposing the bill, McCormick criticized it as a “giveaway” to insurers, benefiting families earning up to $500,000 annually with automatic enrollments he argued could lead to fraud.

Pennsylvanians using the marketplace face average premium increases of over 21% starting Jan. 1.

A November KFF Health Tracking Poll revealed that 74% of Americans support extending the tax credits.

President Donald Trump rejected any extension, emphasizing in a Nov. 18 Truth Social post the need to redirect funds directly to people rather than insurers.

Parallel to the bill’s blockage, 51 Republicans backed a different bill led by Sens. Bill Cassidy and Mike Crapo, also missing the required 60-vote threshold. It aimed to replace tax credits with subsidies for catastrophic health insurance plans.

“Empower patients, not insurers,” Cassidy urged in a Dec. 4 speech, advocating for affordable health care.

Schumer labeled the proposal as “junk insurance,” stating it disguises efforts to block ACA tax credits, misleadingly raising health care costs.