By Greg Iacurci
Copyright cnbc
Democrats offered the enhanced subsidies in 2021 as part of the American Rescue Plan Act pandemic-relief law. Lawmakers extended them in the Inflation Reduction Act, which former President Joe Biden signed in 2022.
It’s unclear whether the Republican-controlled Congress will extend them again.
The GOP didn’t include an extension as part of the so-called “big beautiful bill,” a tax and spending package estimated to cost some $4 trillion over a decade. That law would also cause another 11 million Americans to be uninsured over the next decade due to other healthcare policy changes, to Medicaid and the ACA, the Congressional Budget Office estimated.
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There has been a push by some Republican lawmakers to continue the enhanced ACA subsidies, at least through the midterm elections.
There are 11 legislative days before a potential government shutdown on Oct. 1 — and Democrats are likely to “flex some policy muscle” to try pushing through an extension, Chris Krueger, managing director of TD Cowen’s Washington Research Group, wrote in a note Monday.
“Many Congressional Republicans are also eager to extend these subsidies for fear of health insurance sticker shock in advance of the November 2026 midterms,” Krueger wrote.
Extending them would cost about $25 billion in 2026, Krueger wrote.