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The U.S. Senate has failed to bring to a vote two bills that would have extended subsidies under the Affordable Care Act (ACA) beyond the end of the year. Meanwhile, a coalition of 22 House Democrats and 15 House Republicans, led by Rep. Jennifer Kiggans, R-Va., has proposed the CommonGround for Affordable Health Care Act bill, which could at least temporarily extend subsidies if passed.
The Democrats introduced a bill that would have extended the current level of subsidies for three years. The Republican version would have allowed the current subsidy levels to expire, replacing them with a cost-sharing reduction subsidy and $1,000-$1,500 in cash for health savings accounts (HSAs) for low- and moderate-income individuals. Neither bill attracted the necessary 60 votes to reach the floor without the threat of a filibuster.
The rejection of the bills proposed by both Democrats and Republicans has left the subsidies to expire with no recourse for the millions of Americans who rely on them. According to estimates by the Kaiser Family Foundation, out-of-pocket costs for a typical family with ACA coverage could double. Others have reported that the expiration of the subsidies will cause their ACA premiums to increase exponentially.
ACA subsidies increased during the COVID-19 pandemic due to legislation that allowed subsidies for anyone whose annual premium costs exceeded 9% of their income. With the expiration of the increased subsidies, only individuals who earn less than 400% of the federal poverty level (currently $62,600 for an individual in most of the U.S.) per year are eligible.
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