House GOP leaders race to release health care package Friday

House Republican leaders are rushing to release a new health care package Friday, but a morning meeting with members of key GOP faction left unsettled whether to allow a floor vote on extending expiring Obamacare tax credits.

Speaker Mike Johnson and other members of his leadership team want to file text of the health care legislation as soon as possible in order to comply with House notice requirements and prepare it to be take up by the House Rules Committee early next week. But the matter has been held up as they negotiate with conservative hard-liners who are wary of teeing up a vote to extend the expiring insurance subsidies.

“This is going to be a great piece of legislation that everyone will be united around," Johnson told reporters after the meeting.

The core package is expected to include an expansion of health savings accounts and association health plans, as well as funding for cost-sharing reductions that help low-income Obamacare enrollees afford their plans. But moderate House Republicans want an amendment vote to add what is likely to be a two-year extension of the enhanced tax credits that were enacted by Democrats during the Covid-19 pandemic and are set to expire Dec. 31.

GOP leaders had been planning to let the subsidies expire, but they are now inclined to allow a floor amendment on an extension, according to four people granted anonymity to describe the closed-door Friday morning meeting with Johnson and a swath of senior Republicans.

The current thinking among House GOP leaders, three of the Republicans said, is that the amendment would fail on the floor. But the GOP moderates who support a subsidy extension would be likely to support the final package anyway, two other Republicans said, believing that voting for something to lower health care costs would be better than nothing.

One possible wrinkle: Some Democrats could end up supporting the amendment, giving it enough backing for adoption. But that could lead some conservative Republicans to abandon the bill, and Democrats are not likely to support its other provisions — potentially tanking the final product.

Conservatives, including Budget Chair Jodey Arrington (R-Texas), have strongly objected to any attempt to continue the tax credits.

"I pity the Republican that has to explain why they would propagate or perpetuate, I should say, a fraud-ridden subsidy from the Covid era to prop up a failed health care program," Arrington said Friday, saying it would make Republicans "complicit in propping up the very driver" of rising health care costs.

But he suggested a vote on an extension would happen regardless: "I expect people are going to have an opportunity to vote their conscience and then go defend their votes back home like we always do."

House Majority Leader Steve Scalise said the topic was “heavily discussed” in the meeting, which another senior House Republican described as “lively.” Leaving the session, Scalise said leaders would be "making final decisions shortly, because we have to file text later today.”

Benjamin Guggenheim and Nicholas Wu contributed to this report.