(NewsNation) — A bipartisan group of House lawmakers known as the “Problem Solvers Caucus” has introduced a plan to temporarily extend COVID-era Affordable Care Act subsidies, with reforms and plans for long-term improvement.
The bipartisan Healthcare Optimization Protection Extension, or HOPE Act, is the first step toward a possible resolution on the issue.
The deal includes a two-year extension of health care subsidies, with an income cap of $200,000 for a family of four. Subsidies for higher-income brackets would be gradually phased out, and new guardrails would be put in place to guard against “ghost beneficiaries,” subsidies paid to insurance companies without an actual person connected to them.
ACA subsidies were at the heart of the funding fight that led to the longest government shutdown on record, which ended without a commitment to extend them.
If the subsidies aren’t extended, at least 22 million Americans who buy insurance through the exchange will see premium increases, according to the Kaiser Family Foundation, in some cases more than doubling. Millions of Americans could also become uninsured if they can’t afford to pay the premiums.
There are also likely to be ripple effects that affect millions of Americans insured through their employers, as an increase in the number of uninsured Americans puts more strain on the health care system.
While Republican leadership refused to commit to extending subsidies to end the shutdown, behind the scenes, they recognize the political reality that voters will blame them for price hikes.
The Senate is also said to be working toward a bipartisan measure, but it has yet to be unveiled.
President Donald Trump has said he would prefer to send cash payments directly to Americans.