House Republicans Propose New Healthcare Plan Amid Rising Premiums

House Republicans, led by US House Speaker Mike Johnson, have proposed a new healthcare plan that does not include an extension of enhanced tax credits for millions of Americans purchasing insurance through the Affordable Care Act marketplaces.

These tax credits are set to expire on December 31, 2023, potentially causing health insurance premiums to rise sharply for at least 22 million Americans. In response to rising healthcare costs, the Republican plan focuses on enhancing access to employer-sponsored health insurance, expanding association health plans, and requiring more data from pharmacy benefit managers to control drug costs.

However, the proposal does not extend the enhanced tax credits that were enacted during the Biden administration in 2021, which helped lower premiums for those with ACA coverage. As Congress approaches the end of its 2025 work, centrist Republicans are collaborating with Democrats to pursue temporary extensions of the subsidies to avoid rising healthcare costs for families.

One such initiative involves discharge petitions that could force a floor vote on extending the ACA subsidies. As of now, there are competing proposals with varying levels of support, but no consensus solution has been reached, leaving millions of Americans concerned about their healthcare affordability as the end of the year approaches.