Health experts warn of 'devastating' impact after Senate rejects Affordable Care Act tax credit extension
The Senate on Thursday rejected two health care bills aimed at the Affordable Care Act, drawing criticism from multiple health care organizations and growing partisan divides.
One is a Democratic bill that would extend the Affordable Care Act's enhanced premium tax credit for three years. The subsidies, which lower premiums for people who receive health care on the marketplace, are set to expire at the end of this year. It is estimated that if the tax credit expires, ACA Marketplace premiums will more than double on average next year.
The other is a Republican bill that would not extend subsidies but would provide annual health savings account payments of up to $1,500 to those whose incomes fall below 700% of the federal poverty level. However, this money cannot be used to pay premiums.
The bills needed at least 60 votes to pass, but both bills received 51 to 48 votes. Republican Senators Susan Collins (Maine), Josh Hawley (Missouri), Lisa Murkowski (Alaska) and Dan Sullivan (Alaska) voted for the Democratic bill. No Democrats voted for the Republican bill, and Sen. Rand Paul (Ky.) was the only Republican to oppose it.
Patient advocacy group American Families condemned the Senate vote.
“Today's Senate vote to deny extending the premium tax credit will have devastating immediate consequences for the health and finances of families across the country and will ripple throughout the health care system we rely on,” Anthony Wright, executive director of American Families, said in a statement. “With just days left before the January 1 deadline for Americans to sign up for coverage, senators decided to double or more premiums for the 22 million Americans who rely on these premium tax credits to afford coverage.”
The group also called on the House to step up efforts to expand the tax credit, although the House has yet to reach consensus on a plan.
The Community Affiliated Program Association responded to those comments.
“Families deserve a viable solution to skyrocketing premiums,” said ACAP CEO Margaret A. Murray. “Words don't help, policy solutions do. These enhanced tax credits for families who rely on marketplace coverage are a highly successful way to help people afford coverage. Simply allowing subsidies to lapse is a deliberate way to skyrocket costs for millions of families. What is needed in this moment are policy solutions that can help working and middle-class families during the holidays, not split-screen messaging efforts.”
Community Catalyst, a group focused on racial equity and health justice, also came out against the vote, saying the Senate's inaction, combined with “A Beautiful Big Bill,” will seriously harm access to care.
“We know who will bear the brunt: Black, Latino, immigrant and low-income families, who already face the most severe affordability barriers because of decades of policy decisions that have limited wages, wealth and access to stable, affordable insurance,” said Michelle Sternthal, director of government affairs at Community Catalyst. “If Republicans are serious about lowering costs, they will immediately pass a permanent, clean extension of these tax credits and repeal the dangerous health care cuts in HR 1.”
Photo: MikeyLPT, Getty Images
