Trump delays healthcare plan amid GOP pushback

Earlier this week, reports surfaced that President Trump and his advisers were considering a new healthcare plan that would extend Covid-era enhanced tax credits for the Affordable Care Act, which are set to expire at the end of this year.

While details of the White House’s new proposal have yet to be finalized, it would reportedly include stricter income caps for the enhanced subsidies—which would be extended for two years—as well as measures to crack down on healthcare fraud.

However…The White House ended up delaying the plan’s announcement on Monday afternoon amid GOP pushback. In a phone call yesterday, House Speaker Mike Johnson (R-LA) reportedly told the White House that most Republicans in the chamber are opposed to extending the enhanced ACA subsidies, which were first introduced in 2021 due to the pandemic.

• Many GOP lawmakers reportedly object to the taxpayer-funded subsidies continuing to fund healthcare plans that cover abortions, while some want to replace the subsidy with new health savings accounts.

The arguments

Republican lawmakers argue that the enhanced gov’t subsidies for healthcare drive up insurance costs, are no longer necessary in the aftermath of the pandemic, and only temporarily cover up the inadequacies of Obamacare.

• They also cite estimates from the nonpartisan Congressional Budget Office that indicate the enhanced ACA subsidies would increase the US federal deficit by ~$350 billion over the next decade.

On the flip side, Democrats in Congress say the government should help Americans afford healthcare no matter the costs. They argue that without an extension of the enhanced tax credits, healthcare costs would skyrocket for millions of Americans, forcing some to forgo coverage altogether.

• Many also point to recent public polling that shows strong support for Congress acting to extend the enhanced subsidies, even among a majority of Republicans who align with the MAGA movement (57%).

Any action would have a major impact

There are currently 24.3 million ACA Marketplace enrollees, a figure that’s more than doubled since the Covid-era enhanced subsidies were first introduced in 2021. And if the enhanced Covid-era subsidies expire, annual premiums for the ~22 million enrollees who currently receive a tax credit are projected to increase an average of ~114%, from $888 this year to $1,904 next year, according to health-research nonprofit KFF.

Looking ahead…Congress is facing a mid-December deadline for a vote to extend the ACA healthcare subsidies, which was promised to Democrats as a condition for ending the gov’t shutdown earlier this month.

📊 Flash poll: Do you think Congress should extend the enhanced Affordable Care Act subsidies, or let them expire at the end of this year?

• Extend them
• Let them expire
• Unsure/other