Moderate House Dems, GOP Release ‘Principle’ for Obamacare Subsidy Extension
A quarter of bipartisan House lawmakers on Monday proposed a framework to temporarily extend Obamacare’s extended tax credits that includes a sunset period and income caps for high earners.
The “policy statement” by Reps. Don Bacon (R-Neb.), Tom Suozzi (DN.Y.), Jeff Hurd (R-Colo.) and Josh Gottheimer (DN.J.) represents the only public proposal from both parties to address subsidies since the government shutdown more than a month ago.
Democrats have insisted that any deal to end the shutdown must include an extension of the increased subsidies, which expire at the end of the year. They complain that Republicans have no interest in an extension and don’t care about the cost to consumers.
Republicans say any health talks would happen after the government reopens, though many admit they don’t want an extension because they say the tax credits mask the underlying failures of Obamacare.
Moderate Republicans are growing impatient with Speaker Mike Johnson (R-La.) to keep the House out of session since September, and Democrats are refusing to entertain the possibility of raising subsidies unless they vote for a House-pass continuing resolution to fund the government.
Some weak Republicans and moderate Democrats unveiled legislation in September to extend the tax credit by one year. The latest plan could be a sign that lawmakers are beginning to look for an off-ramp from the impasse, though there is no indication that leadership in either party supports the framework.
“Congress is deadlocked, and many Americans have lost faith that we can work together. But here’s the truth: Democrats and Republicans can sit down, listen to each other and find common ground, especially when it comes to lowering health care costs,” Bacon, Suozzi, Hurd and Gottheimer said in a statement.
“Compromise is not rocket science, and it should not be viewed as weakness. … Our hope is that this shared statement of policy will inspire bipartisan cooperation across Washington and help make Congress work again for the American people,” they said.
Lawmakers’ plan would extend the subsidy for the next two years, with an income cap on eligibility for people earning between $200,000 and $400,000. Currently there is no income limit, although the subsidy ensures that no one pays more than 8.5 percent of their annual income.
To appease conservatives who say the subsidies fuel fraud, lawmakers have proposed a series of “guardrails,” including the Affordable Care Act (ACA) requiring marketplaces to make sure recipients don’t die and for both parties to identify ways to crack down on unscrupulous agents and brokers who engage in fraud with a health plan.
The plan calls for marketplaces to better inform recipients of the value of extended tax credits they receive from the federal government.
But many conservatives want to use the expiration of extended subsidies as an opportunity to tackle broader health care reform and potentially undo more of the Affordable Care Act. It’s unlikely they’ll support a plan that expands tax credits without deep cuts.
Most people enrolled in Affordable Care Act plans qualify for financial assistance, so they aren’t paying the full price, a fact cited by Republicans opposing an extension. Even if the additional subsidy ends at the end of the year, most enrollees will still be eligible for assistance to reduce their monthly premium costs.
But the hardest hit will be high-income people, especially small business owners who rely on the extended tax credit.
