...
By Simon Crerar
0
Share
Newsweek is a Trust Project member
See more of our trusted coverage when you search.Prefer Newsweek on Googleto see more of our trusted coverage when you search.
President Donald Trump has opened the door to a possible continuation of expiring Obamacare health subsidies, telling reporters aboard Air Force One an extension may be required.
"Some kind of an extension may be necessary to get something else done, because the unaffordable care act has been a disaster," Trump told reporters on Air Force One, referring to the Affordable Care Act (ACA).
...
Read More on Politics
Why It Matters
The expiration of Obamacare tax credits at the end of the year would see average increases for ACA-compliant plans go up significantly with those working in small businesses, the retired and students most impacted.
According to the non-partisan Congressional Budget Office, letting the subsidies lapse would cause next year’s premiums to more than double for many enrollees and leave an estimated 2 million additional people uninsured.
The administration says it is working to prevent substantial premium hikes triggered by the looming expiration of major ACA subsidies, the battleground issue of the recent shutdown for Democrat lawmakers.
What To Know
Aboard Air Force One en route to Florida, the president rubbished suggestions he would extend the subsidies for two years.
"Somebody said I wanna extend them for two years. I don’t want to extend them for two years. I’d rather not extend them at all," Trump told reporters. "I like my plan the best. Don’t give any money to the insurance companies. Give it to the people directly, let them go out, buy their own health care plan. We’re looking at that."
"A lot of Democrats want this to happen," the president claimed, without mentioning any lawmakers by name. "They would love to see the money go to the people, and the people go out and get their own health care."
On Sunday, the White House had begun to circulate a draft plan that would extend ACA subsidies for two more years and make changes to how consumers qualify for and pay for coverage, according to people familiar with the proposal.
The enhanced subsidies were created in 2021 under President Joe Biden to lower Obamacare premiums during the pandemic, making some plans free for lower-income people. Democrats extended the enhanced subsidies in a 2022 law, setting them to expire in December 2025.
To bring the longest ever federal shutdown to an end after 43 days, Senate Republicans agreed to hold a December vote to extend the enhanced subsidies after Congress approved a short-term government funding measure into January.
The Congressional Budget Office projects that a 10-year extension of the subsidies would cost $350 billion.
What People Are Saying
White House spokeswoman Karoline Leavitt: "Contrary to fake news reporting, President Donald Trump is not considering a straight two year subsidy extension. The president is having ongoing conversations with members of his administration, members of Congress, and private sector experts."
**Democrat Senator Maggie Hassan, who voted to reopen the government earlier this month: "**The fact that President Donald Trump is putting forward any offer at all to extend the Affordable Care Act’s tax credits shows that there is a broad understanding that inaction in this regard will cause serious harm to the American people."
What Happens Next
The Trumps were traveling to Mar-a-Lago in Palm Beach, Florida for the Thanksgiving holiday.
With just weeks before the extended subsidies end and a critical midterm election year ahead, Republicans face pressure to find a path forward.
View 0 Comments
Submit Correction
View Editorial & AI Guidelines