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By Andrew Stanton
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A group of moderate Republicans serving in the House of Representatives is pushing for a one-year extension of the enhanced Affordable Care Act (ACA) premium tax credits.
Newsweek reached out to Representative Jen Kiggans, the Virginia Republican leading the push, for comment via email.
Why It Matters
The premium tax credit, which helps lower-income Americans purchase health care in the ACA marketplace, is set to expire at the end of 2025 if Congress does not act. Although Republicans have generally opposed the ACA, some have pushed for these tax credits to be extended at least until after the 2026 midterms, when they are hoping to avoid losses that typically come during the first midterms of a new administration.
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If Congress does not extend the premium tax credit, 4.1 million Americans would lose their health insurance, according to a report from the Congressional Budget Office (CBO) released in June.
What To Know
The House Republicans are introducing a bill that would extend the credit for one year, which would push the matter until after the midterms, reported Punchbowl News.
Kiggans told Punchbowl she would support a reasonable "phase out" of the credit but that Congress needs more time to craft such a policy. Cutting millions of Americans off from the credit "cold turkey" should not happen, she said.
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In addition to Kiggans, GOP Representatives Juan Ciscomani of Arizona, Rob Bresnahan of Pennsylvania, Brian Fitzpatrick of Pennsylvania, Carlos Gimenez of Florida, Jeff Hurd of Colorado, Tom Kean Jr. of New Jersey, Young Kim of California and David Valadao of California are also co-sponsoring the bill. All represent competitive districts.
Two moderate Democrats, Representatives Jared Golden of Maine and Tom Suozzi of New York, have also joined the bill, Punchbowl reported.
President Donald Trump and his supporters have generally opposed the ACA, also known as Obamacare, and have pushed for its repeal. During his first administration, Trump almost repealed the health care law, but was famously rebuffed by Republican Arizona Senator John McCain, who voted against the administration.
Some Republican senators have also previously signaled openness to extending the tax credit. Senator Thom Tillis, of North Carolina, told Punchbowl earlier in the summer that it would be a "perfect opportunity for us to move past the reconciliation process, which is clearly a partisan exercise."
Health Care Policy Analysts Warn of 'Catastrophic' Consequences if Credit Expires
Two health care policy analysts told Newsweek the bill would address a significant concern for credit beneficiaries.
Lucy Hodder, director of health and life sciences law and policy at the University of New Hampshire, told Newsweek the impact of the credit expiring would be "severe and ultimately catastrophic."
"The enhanced APTCs [advance premium health credits] make insurance affordable on the Marketplace exchange, which was created to provide individuals an affordable option for health insurance. Not only will people be immediately impacted financially, resulting in people having to purchase health insurance that results in a significant drain on income, many people will simply forgo insurance or seek to 'under insure' themselves," she said, adding it would also come as a detriment to the health insurance marketplace.
"This will ultimately impact the viability of the Marketplace as a risk pool – more people who are otherwise healthy or 'healthier' will simply decide to forgo insurance altogether, resulting in riskier pools who are insured, resulting in prices going even higher and resulting in the death spiral that brought about insurance reform in 2010 in the first place," Hodder warned.
"Congress needs to get smart and work harder to figure out ways to support affordable health care, including Rx drug costs, in the immediate future," she added.
Nancy Nielsen, senior associate dean for health policy at the University of Buffalo, echoed Hodder's concerns to Newsweek, warning of the effect on Americans if the credit expires.
"Some healthy people may find the rates unaffordable and will forego insurance, taking their chances that they will remain healthy. That would result in a smaller pool of potential insureds which constitutes a higher risk for insurers. Fewer insurers will participate in state and government marketplaces because of that risk. So individuals and families now obtaining insurance through one of the marketplaces will find fewer choices and higher premiums," she said.
Both Democratic and Republican officials are aware of the costs of being uninsured—which include living shorter, sicker lives, Nielsen added, saying that a long-term solution—although politically challenging—would be to make the credit permanent.
"The struggle will be a political one, deciding if this provision affects enough people to be politically damaging. There's no credible way to invoke fraud and abuse to justify ending the subsidies, but to date, Republican leaders have not expressed widespread support for extending them. Depending on the negotiations to avoid a government shutdown, the cost of the subsidies may come up as a reason to let them lapse," she said.
What People Are Saying
Kiggans, in a press release: "As a nurse practitioner, military spouse, and Mom, I understand firsthand how critical affordable health care is for working families. In Congress, I've made it my mission to ensure Virginians—especially our seniors, small business owners, and middle-class families—aren't blindsided by skyrocketing costs they can't afford. While the enhanced premium tax credit created during the pandemic was meant to be temporary, we should not let it expire without a plan in place. My legislation will protect hardworking Virginians from facing health insurance bills they can't afford, thus losing much-needed access to care."
Pollsters Tony Fabrizio and Bob Ward wrote in a polling memo: "Republicans can position themselves ahead of Democrats in these districts by extending the premium tax credit and using the individual market as a landing spot for working age adults on Medicaid."
A Peterson-KFF report from June said: "The enhanced premium tax credits are now set to expire at the end of 2025. Unless the premium tax credits are extended, consumers can expect increases in both the net premium payments and gross premiums."
What Happens Next
Health care will likely remain a key issue in the midterms, particularly following the Medicaid cuts included in the One Big Beautiful Bill Act.
Whether this bill will receive support from GOP leadership or broad support among House Republicans is unknown.
Update 09/04/25, 5:25 p.m. ET: This article was updated with additional information.
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