House GOP Proposes Health Care Plan Without ACA Subsidies

House Republican leaders unveiled a new health care plan that does not extend the Affordable Care Act premium tax credits, a decision that could significantly impact over 20 million Americans facing rising insurance costs.

According to CBS News, the proposed plan includes a vote on an amendment that could allow for an extension of those expiring tax credits, aimed at appeasing moderate Republican lawmakers. House Speaker Mike Johnson stated that while Democrats want taxpayers to bear the costs of insurance companies, Republicans are focused on addressing the real drivers of health care costs.

The plan includes provisions to expand association health plans, which allow multiple employers to band together to purchase coverage, as well as measures for greater transparency from pharmacy benefit managers to lower drug costs.

However, it has sparked division within the GOP itself, as some members push for a clean extension of the ACA subsidies. The competing Democratic proposal seeks a three-year extension of the subsidies, which Republicans have labeled as financially irresponsible, according to The Hill.

This ongoing partisan divide is exacerbated by the impending expiration of the tax credits at the end of this month, which, if not addressed, could lead to a steep increase in premiums for millions. The Guardian notes that Johnson's plan, while ambitious, is seen as a last-ditch effort to tackle health care reform as Congress prepares to close its session.

Meanwhile, moderate Republicans are aligning with Democrats to push for their own proposals to extend the tax credits temporarily, complicating the landscape further. As the debate continues, the potential consequences of failing to extend the subsidies could leave many Americans facing significantly higher health care costs in the coming year.