Starting January 1, millions of Americans will see health care costs skyrocket after the U.S. Senate rejected a bill extending tax breaks under the Affordable Care Act.
The subsidies, which benefited more than 20 million Americans, were probably Congress’s best way to prevent subsidies from expiring and raise premiums for many Americans who buy insurance directly on the exchanges under the Affordable Care Act. While the expiration of this rule won’t completely eliminate tax credits, they will return to pre-pandemic levels, and many families’ premiums could still escalate by $1,000 a year or more.
Senators voted 51-48 to approve the GOP health care plan, which would include expanding health savings accounts as an alternative to expiring tax credits. Democrats’ plan to extend increased Covid-era subsidies for three years also received a 51-48 vote. Both proposals fell well brief of the 60 votes needed to overcome a key procedural hurdle.
Pennsylvania senators split their votes. Senator John Fetterman it was affirmative P. 3385 which was the Democrats’ proposal, and “no.” P. 3386 which was the Republican proposal. Senator Dave McCormick he voted the opposite of his Keystone State partner, voting “no” on 3,385 and “yes” on 3,386.
It was an unceremonious end to Democrats’ months-long effort to prevent Covid-19 grants from expiring on Jan. 1, including their forced 43-day government shutdown over the issue.
After Thursday’s failed votes, senators were already dithering as they tried to combine the savings account flexibility in the GOP bill with an expansion of subsidies with income limits and other eligibility restrictions. However, many challenging political disputes, including the dispute over restrictions on abortion, would have to be resolved by an acceptable agreement.
In the House, two bipartisan groups of lawmakers filed discharge motions in an attempt to force a vote on a compromise extension of the subsidy, despite opposition from GOP leaders.
It’s unclear whether enough Democrats will sign on to plans to gain a majority in the House amid questions about whether the plans have a chance of becoming law.
Even if the grant plan were to pass the House, Senate GOP leaders could block it.
