WASHINGTON (NewsNation) — The Senate on Thursday failed to advance dueling health care plans before Affordable Care Act subsidies expire, which would raise premiums for millions of Americans.
The Senate voted on two partisan bills, essentially guaranteeing that many who buy their health insurance on the ACA marketplaces will see steep cost increases at the beginning of the year.
The votes failed to end a monthslong Democratic effort to prevent the COVID-era subsidies from expiring on Jan. 1. Both bills needed 60 votes to pass; neither reached that threshold.
The Republican legislation, led by Senators Bill Cassidy, R-La., and Mike Crapo, R-Idaho, failed to advance in a 51-48 vote. Kentucky Senator Rand Paul was the only Republican who joined Democrats to vote against advancing the bill. Senator Steve Daines, R-Mont., did not vote.
The Democrats’ plan to extend ACA tax credits also failed to advance in a 51-48 vote. Four Republicans — Senators Lisa Murkowski and Dan Sullivan of Alaska, Susan Collins of Maine and Josh Hawley of Missouri — joined Democrats to support advancing the legislation.
Democrats eye 3-year ACA subsidy extension
Senate Majority Leader John Thune promised the vote after Democrats made extending the subsidies a focal point during the record-breaking government shutdown.
Democrats want a three-year extension of the subsidies, but some Republicans argue the plan is too expensive and doesn’t do enough to combat fraud.
The Republican proposal would allow the subsidies to expire and redirect the savings into health savings accounts, or HSAs, for people enrolled in bronze or catastrophic plans.
Millions could see out-of-pocket costs rise
The expiring subsidies have created uncertainty for millions of Americans.
“$1,455 a month for health care premium has got my attention,” said charter boat captain Tom Frady. “I think our senators and congressmen, House members, all of them need to come together and get in a room and let’s duke this out; let’s fix it.”
“It’s making us reevaluate leaving the corporate world,” added Brady Reiter, co-owner of Renegade Lemonade. “If we had to go back to corporate America because we can’t afford access to health care, not even health care, just access to health care, that would be a shame.”
Affordable Care Act subsidies are set to expire on Dec. 31.
The nonpartisan Center on Budget and Policy Priorities says more than 20 million Americans receive the premium tax credits. Without them, costs will increase by more than $1,000 for the average enrollee.
The Congressional Budget Office estimates a three-year extension would cost around $85 billion.