Millions Face Huge Health Insurance Costs Unless Congress Extends Subsidies

There is bipartisan support in Congress for extending tax credits that have made health insurance more affordable for millions since the COVID-19 pandemic.

The tax credits, which are set to expire at the end of the year, go to low- and middle-income people who buy coverage through the Affordable Care Act.

But the credits are at risk of expiring as Republicans and Democrats clash over how to proceed, Mary Clare Jalonick and Amanda Seitz reported for the Associated Press (AP).

Democrats are threatening a government shutdown at the end of the month if Republicans refuse to extend the subsidies, which were first enacted in 2021 and extended the following year when Democrats controlled Congress and the White House.

The tax credits, which are set to expire at the end of the year, go to low- and middle-income people who buy coverage through the Affordable Care Act, Lisa Mascaro and Hannah Fingerhut also reported for AP.

Some Republicans who have opposed the ACA since its passage under President Barack Obama are now open to keeping the tax credits, acknowledging that many constituents would face steep hikes if subsidies lapse.

Still, the parties remain far apart. Republicans are divided, with many firmly opposed.

GOP leaders in the House and Senate have been open but noncommittal, while some Republicans who support the extension argue the credits should be restructured — potentially sparking a new health care debate that could take months to resolve.