US House Vote Clears Path for Expiration of Expanded Affordable Care Act Subsidy
Source :- CNBC
A larger federal healthcare subsidy from the United States that was put in place during the pandemic will end at the end of the year. This is because the House of Representatives voted for a Republican healthcare bill without renewing the tax credit. The news has made people even more worried that millions of Americans may soon have to pay more for health insurance.
On Wednesday, the House voted 216 to 211 to pass the Republican bill, which does not extend the enhanced Affordable Care Act subsidy. This vote is likely to be Congress's last big action on healthcare policy this year. The decision came after Republicans started to disagree with each other, with some members joining Democrats in calling for a three-year extension of the subsidy.
The House voted 204 to 203 earlier in the day on a procedural motion that stopped a last-minute Democratic attempt to force votes on extending the Affordable Care Act benefit right away. Four Republicans voted with the Democrats in that vote, which shows that more and more Republicans are worried about what might happen if the subsidy runs out.
Democrats were angry about the procedural move and said that Republican leaders ended the vote too soon, while some lawmakers were still trying to cast their ballots. Representative Jim McGovern from Massachusetts was one of the people who spoke out against the action on the House floor, calling it outrageous and criticizing what Democrats said was an attempt to stop debate.
Democrats can still ask for a vote on their proposed three-year extension of the subsidy, according to House rules. House Speaker Mike Johnson told reporters late Wednesday that he wouldn't set up a vote like that until Congress met again in the first week of January. By the end of this week, lawmakers are expected to take a break. Johnson also made it clear that he would vote against the extension, saying that the higher subsidy was not a good idea.
The expanded subsidy was put in place during the COVID pandemic to help Americans who buy health insurance through the Affordable Care Act marketplaces pay for it. It raised the amount of tax credits and made more people eligible, which lowered premiums for millions of people by a lot. The subsidy will end on December 31 if Congress doesn't do anything about it. This could cause premiums to go up sharply starting on January 1.
Around 24 million Americans now get health insurance through the Affordable Care Act, which is also known as Obamacare. Policy experts say that a lot of these people could see their monthly premiums go up a lot if the extra help stops. Some people might have to switch to plans with higher deductibles and copayments that cost less, while others might decide to stop paying for coverage altogether.
Senate Democratic Leader Chuck Schumer said that the effects could be very bad. He said that millions of Americans could lose their health insurance, and tens of millions more might have to switch to plans that offer fewer benefits and cost more out of pocket. Democrats say that extending the subsidy is necessary to keep the coverage gains made in recent years.
Republicans, on the other hand, have defended their approach by pointing to a bigger overhaul of the subsidy system. The goal of the Republican healthcare bill is to lower premiums for some people and cut the amount of money the federal government spends on subsidies overall. Changes would start to happen in January 2027, and some people would pay less for their premiums while others would pay more.
The bill also wants to make it easier for people to get association health plans. Supporters say that these plans could lower costs by spreading risk across larger pools, allowing small businesses, freelancers, and self-employed people to buy group health insurance. Critics, on the other hand, say that these kinds of plans usually don't offer as many protections and benefits as plans that follow the Affordable Care Act.
The end of the enhanced subsidy comes at a time when there are bigger discussions about how affordable healthcare is and what role government support should play in the insurance market. Congress is split, and the clock is ticking toward the end of the year. This means that people who depend on the Affordable Care Act for health insurance are still unsure about what will happen.
As Congress gets ready to leave Washington for the holidays, it looks more and more like the future of the subsidy is in doubt. When Congress comes back in January, any attempt to bring it back or extend it will probably face a lot of political opposition. This means that millions of Americans are getting ready for possible increases in healthcare costs at the beginning of the new year.
Also Read :- World Care Magazine For more information