Progress on ACA Tax Credit Deal Halts, Say Senators

According to news on Thursday, a crucial bipartisan effort to extend Affordable Care Act (ACA) premium tax credits for an additional two years has come to a standstill, noted by several Republican senators.

Ohio's GOP Sen. Bernie Moreno described the situation as hitting a 'pothole,' attributing the setback to Democratic leaders who have yet to move the issue forward. "At this point, I see no reason to proceed until Democratic leadership shows they are open to discussing extending these tax credits with our proposed changes," Moreno remarked.

Moreno had anticipated the proposal's introduction this week. The proposed plan involves extending the ACA's open enrollment period until March 1. As it stands, the federal enrollment deadline ends this Thursday, though individual states might have different deadlines. The ACA’s subsidies are crucial for over 20 million Americans in affording their health insurance premiums.

This bipartisan plan also proposes setting an income limit at 700% of the federal poverty level and eliminating no-cost insurance plans by requiring enrollees to contribute at least $5 monthly or $60 annually. To deter fraudulent enrollments, insurers would face fines of $100,000 per unauthorized enrollment.

In year two, the plan would allow individuals to select a more basic insurance plan and have the funds deposited directly into their health savings accounts instead of paying insurers.

Moreno stressed, "Without a clear commitment from Democratic leaders to rally their members to support this deal, dedicating further time and resources is pointless."

A contentious issue remains the Hyde amendment, which bans federal abortion funding. Some Republicans are pressing to add further Hyde language to ensure its application to plans in state-run exchanges. President Trump has recently urged Republicans to remain 'flexible' regarding this issue, though stricter abortion terms could derail Democratic support which is pivotal for passage.

Alaska GOP Sen. Lisa Murkowski acknowledged the delay was predictable due to Hyde amendment disagreements, saying, "We knew disagreements over the Hyde language would pause progress, and any advancement requires White House backing."

Last year's battle over the subsidies saw Democrats initially refuse to approve government funding without extending these tax credits. Only after securing a commitment for a vote on extension did a faction of Democrats compromise to end the government shutdown. The GOP Senate, however, rejected a Democratic attempt for a three-year extension without implementing reforms.

The push for a bipartisan compromise to tackle the surge in healthcare costs gained momentum last week when the House revived ACA subsidies. Although unlikely to pass the Senate, lawmakers saw this measure as a potential basis for compromise efforts.

"This tax bill needs to start in the House, and the three-year measure serves as that vehicle," stated Rep. Mike Lawler, a New York Republican endorsing the Democrat-led measure last week. "We recognize the three-year proposal won’t become law as it has already failed in the Senate."

Democratic leaders haven't officially backed the emerging Senate plan. House Minority Leader Hakeem Jeffries noted last week that their focus remains on the three-year extension. Still, they remain open to any genuine Republican effort that promises a 'meaningful extension' of subsidies.

On Monday, Jeffries reiterated the need for the Senate to vote on the three-year plan, urging, "At present, the Republicans in the Senate need to prioritize the American public's needs and pass the bill we have sent their way."