The issue is a tricky one for Republicans, who had opposed the Affordable Care Act, commonly known as ObamaCare, unanimously in 2010, and united again against the two Biden-era laws that first created, and then extended, the enhanced tax credits for patients during the pandemic.
More than 24 million Americans are enrolled in the insurance marketplace this year, and about 90 percent — more than 22 million people — are receiving enhanced subsidies. According to the Congressional Budget Office, 4.2 million people are projected to lose insurance by 2034 if the subsidies aren’t renewed.
The fight over the subsidies comes on the heels of another massive battle over health care: the sharp cuts to Medicaid funding in the GOP’s “big, beautiful bill,” which Democrats are still going on offense over and Republicans are racing to defend.
Now, Democrats are seeking to dial up pressure on Republicans for a bipartisan tax credit extension. While there isn’t yet a cohesive call for Democrats to vote against a spending bill without a tax credit extension, Republicans control all levers of power in Washington, and some Democrats feel the GOP would be blamed if the government shuts down.
The subsidies expire at the end of the year, but Democrats said they view a stopgap funding bill as their best legislative chance. Republicans need at least seven Democratic votes in the Senate to pass the bill.
But extending the subsidies even for one year would cost approximately $24 or $25 billion, and Republicans argue the cost is too great. They argue the credits hide the true cost of the health law and subsidize Americans who don’t need the help. They also argue that the subsidies have been a driver of fraudulent enrollment by unscrupulous brokers seeking high commissions.
