Shutdowns are coming to an end, but access to affordable ACA marketplace plans remains at risk
Yesterday, the House joined the Senate in passing a stopgap measure to end the longest federal government shutdown in history. While the agreement funds important programs like the Supplemental Nutrition Assistance Program (SNAP) and ensures federal workers get paid, it does not include an extension of tax credits to lower the cost of health insurance purchased through the Affordable Care Act (ACA) marketplaces. The expiration of these tax credits, along with previous congressional action to cut Medicaid funding, is at the heart of the government shutdown.
The expiration of ACA tax credits, along with previous congressional action to cut Medicaid funding, are at the core of the government shutdown.
The Democratic caucus seeks to keep the tax credits in place, while Republicans are either content to see them expire or want to discuss the issue separately outside of the budget negotiation process.
Continuous solutions solve some problems
Yesterday, Congress agreed and the President signed a Continuing Resolution (CR) to fund the government until January 30, 2026.
The January deadline gives Congress time to craft an appropriations bill to renew funding for government agencies. It also includes expansions of Medicare telemedicine and home hospital mandates. Spurred by recent turmoil over the continuity of the SNAP program, the legislation explicitly extends SNAP funding through September 30, 2026.
The legislation explicitly extends SNAP funding through September 30, 2026.
But the harm to millions continues
Medicare rights groups continue to urge Congress to expand a critical tax credit to help millions of people, including many who are close to Medicare eligibility and family members of Medicare beneficiaries, pay for health insurance. In addition to the devastating health and financial impacts that being uninsured can have on individuals and their families, widespread underinsuring and underinsuring threatens our entire health care system by increasing the burden on emergency rooms and other safety net providers. It would also put pressure on the insurance market by reducing the pool of younger, healthier enrollees and risking a “death spiral” that reduces affordability for everyone (not just those who rely on tax subsidies) and increases costs for the small group of people for whom the government retains some subsidies after the enhanced tax credits expire.
further reading
Learn more about the origins of the shutdown.
Learn more about the need for Congress to expand critical tax credits to avoid millions losing health insurance.
