Senior Democrats introduced a bill Wednesday to permanently extend Obamacare subsidies that were increased by President Biden’s signature tax-and-climate bill but will expire at the end of 2025.
The supersized subsidies, which defray the cost of monthly premiums, made the Affordable Care Act’s insurance portals more popular and drove record signups.
“There’s no reason why we shouldn’t make these tax credits permanent before they expire next year,” Senate Majority Leader Charles E. Schumer, New York Democrat, said.
Sen. Jeanne Shaheen, New Hampshire Democrat and bill sponsor, and top House Democrats said 20 million families would see higher costs if the generous subsidies are not extended.
“Red states, blue states [and] purple states are all home to families who would be forced to face skyrocketing costs,” she said.
Mr. Biden’s COVID-relief package in early 2021 boosted Obamacare subsidies across the board and lifted the income cap for those eligible to apply, offering financial help to higher earners if benchmark premiums exceeded 8.5% of their income.
The supersized subsidies were extended through 2025 in Mr. Biden’s Inflation Reduction Act of 2022, making the program more financially attractive to customers.
Roughly 21 million selected a plan on the Obamacare marketplace for the 2024 plan year, signaling a steady customer base despite early stumbles in attracting enrollees when the program launched under President Barack Obama.
Democrats are focusing on Obamacare in the heat of a campaign year. They’ve seen the protection and enhancement of the health law as a political winner since the GOP tried and failed to replace the program in 2017.
Former President Donald Trump said that, if elected in November, he would like to revisit Obamacare and find ways to improve it. But he faced criticism for saying at the Sept. 10 presidential debate that he had only “concepts of a plan.”
“I’m not president right now,” Mr. Trump said in the debate. “But … I would only change it if we come up with something better and less expensive. And there are concepts and options we have to do that. And you’ll be hearing about it in the not-too-distant future.”
Ms. Shaheen took a swing at Mr. Trump’s comments, though she didn’t mention the GOP nominee by name.
“The people we serve deserve better than the concepts of a plan. They deserve a real plan,” she said.
Ms. Shaheen said she wants to bring up the issue this year because she doesn’t know what Congress will look like next year and what kind of legislation will move. She said there would be must-pass legislation after the election that could serve as a vehicle for her Obamacare subsidy plan.
Earlier this year at a White House event with Sen. Bernard Sanders, Vermont independent, Mr. Biden said Congress should extend the higher subsidies.
“I’m calling on Congress to make tax credits permanent,” Mr. Biden said. “All of this is a stark contrast to my predecessor and MAGA Republicans in Congress. They want to terminate the Affordable Care Act.”
Republicans say boosting Obamacare subsidies is an inefficient way to address health prices. They say Congress should focus on the underlying cost of health services instead of chasing rising premiums with more taxpayer money.
• Tom Howell Jr. can be reached at thowell@washingtontimes.com.
Please read our comment policy before commenting.