House Republicans Push for Alternative to Obamacare Amidst Healthcare Debate

Senator Bill Cassidy, a Republican from Louisiana, has called on Congress to pass legislation that addresses the expiring subsidies under the Affordable Care Act, stating, "Good policy is good politics." Cassidy, who chairs the Senate Health, Education, Labor and Pensions Committee, co-sponsored a measure to redirect money from tax credits into health savings accounts paired with bronze or catastrophic plans on the ACA marketplace.

This measure failed in the Senate earlier this week, along with a Democratic proposal to extend the subsidies for three years. The enhanced credits, originally passed during the COVID-19 pandemic and extended by the 2022 Inflation Reduction Act, are set to expire at the end of this month.

The Congressional Budget Office projects that if these credits expire, premiums will increase by an estimated 4.3 percent in 2026 and by an average of 7.9 percent from 2026 until 2034. Cassidy expressed hope for a compromise, emphasizing the need to address rising out-of-pocket and premium costs for enrollees in the ACA.

He noted, "Let's just take care of the affordability issue for the enrollee in the ACA, and do it for the out-of-pocket as well as the premium," highlighting his willingness to find common ground with Democratic colleagues.

According to Cassidy, without a permanent extension of the credits, the number of uninsured people could increase by an average of 3.8 million from 2026 to 2034.