(NewsNation) — Affordable Care Act subsidies are set to expire at the end of this month, and with Speaker of the House Mike Johnson announcing Tuesday he won’t call a vote to extend enhanced subsidies, millions of Americans are likely to endure significant increases in their health insurance premiums.
The Trump administration has signaled that lowering health care costs is part of its recent affordability push. However, speaking at an event in Pennsylvania on Tuesday, Vice President JD Vance put the pressure on Congress to lower the cost of health insurance.
“Congress has got to get us something to lower the cost of health insurance for American citizens; the Obamacare system was broken,” Vance said. “Donald J. Trump wants to fix it, but Congress has got to step up here.”
The Senate failed to advance two partisan health care proposals last week, with Democrats pushing for a three-year extension of the subsidies, while some Republicans argue the plan is too expensive and doesn’t do enough to combat fraud. The Congressional Budget Office estimates a three-year extension would cost around $85 billion.
I want ‘money going to the people’: Trump
“ACA subsidies are primarily paid directly to insurers throughout the year and then reconciled through tax returns, taking the form of income tax credits for individuals,” according to the Committee for a Responsible Federal Budget.
President Donald Trump has indicated that he doesn’t want government payments going to insurers and instead wants funds to be sent directly to individuals so they can “buy their own health care.”
“I want all money going to the people and let the people buy their own health care. It’ll be unbelievable,” Trump said Monday. “They’ll do a great job. They’ll get much better health care at a much lower cost.”’
As of now, a plan to accomplish Trump’s goal remains unclear. Last week, when told by a reporter that the expiring subsidies would have an immediate impact on families, Trump said, “Don’t be dramatic.”
Lower Health Care Premiums for All Americans Act
Lawmakers are expected to vote on a package of health care policies Wednesday. Introduced by Rep. Mariannette Miller-Meeks, R-Iowa, the Lower Health Care Premiums for All Americans Act includes several provisions aimed at lowering prices for Americans.
Notably, the package doesn’t include an extension of the Affordable Care Act tax credits. 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 Lower Health Care Premiums for All Americans Act is going to accomplish exactly what the title says,” Speaker Johnson said at a news conference Tuesday. “If it becomes law, premiums will decrease, access will increase, and every American will have more options and flexibility to choose the coverage that works best for them.”
Sources told NewsNation that a handful of moderate senators still believe a bipartisan compromise can be reached that includes subsidies, unlike what is developing in the House right now.
NewsNation’s Tom Dempsey and Taylor Delandro contributed to this report.