Congress fails to save Obamacare subsidies after shutdown fight, premiums set to surge

Lawmakers fought over Obamacare subsidies tooth and nail for the latter part of the year, and ultimately, neither side won.

Senate Democrats thrust the government into the longest shutdown in history in an effort to refocus the narrative in Congress on healthcare, and Republicans agreed to talk about it in the open. And both Republicans and Democrats got a shot to advance their own, partisan plans. Both failed.

Now, the subsidies are set to expire on Wednesday, sending price hikes across the desks of tens of millions of Americans that relied on the credits. 

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When lawmakers return on the first week of January, healthcare will be front of mind for many in the Senate. But any push to either revive, or completely replace, the subsidies may, for a time, take a backseat to the government funding fight brewing ahead of the Jan. 30 deadline.

When asked if he was disappointed that lawmakers were unable to, at least in the short term, solve the subsidies issue, Sen. Josh Hawley, R-Mo., was more concerned about people that would experience higher costs. 

“I think who it’s most disappointing for are the people whose premiums are going to go up by two, three times,” Hawley said. “So, it’s not good.”

Price hikes on premium costs will be variable for the roughly 20 million Americans that rely on them, depending on age, income and other factors. Broadly, a person’s out-of-pocket cost is expected to double with the credit’s lapse, according to the Kaiser Family Foundation.

The nonpartisan healthcare think tank painted a broader picture of the disparate impact on premium cost increases in a report released late last month that, based on myriad factors, including where a person lives, their age range and where they sit above the poverty line, some could see price hikes as high as 361%.

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While Senate Republicans’ and Democrats’ separate plans failed to advance — despite four Republicans crossing the aisle to support Senate Minority Leader Chuck Schumer’s, D-N.Y., plan — lawmakers are working together for a solution.

There are two plans with traction in the House. The GOP’s plan advanced on the floor earlier this month, but doesn’t address the issue of the expiring tax credits. Then there is a bipartisan plan that calls for a three-year extension of the subsidies, similar to Senate Democrats’ plan, that is teed up for a vote.

The latter option, and its bipartisan momentum, has some Democrats hopeful that a three-year extension could get a shot in the upper chamber.

“I’ll also say that the glimmer of hope is if we’re searching for a bipartisan deal that can pass the Congress, we don’t need to search any further than the three-year extension of the subsidies that’s going to pass the House of Representatives,” Sen. Brian Schatz, D-Hawaii, told Fox News Digital. “We don’t need a negotiation any further. That bill can pass, if it can provide relief to the taxpayers, and it can pass, then that’s our vehicle.”

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Senate Majority Leader John Thune, R-S.D., however, has maintained a deeply-rooted position against just a simple extension of the credits.

He argued that a straight-up extension for three years would be “a waste of $83 billion,” and lacks any of the reforms that Republicans desire, like reinstalling an income cap, adding anti-fraud measures, and reaffirming language that would prevent taxpayer dollars from funding abortions.

“I mean, I think if nothing else, depending on if the House sends something over here, there would be a new vehicle available,” Thune said. “And if there is some bipartisan agreement on a plan, then you know, it’s possible that we could — obviously it’d have to be something that we think the House could pass, and the President would sign.”

“But I’m not ruling anything out, I guess is what I’m saying,” he continued. “But you know, a three-year extension of a failed program that’s rife with fraud, waste and abuse is not happening.”

Senate Democrats are open to negotiating on a bipartisan plan, something that is already ongoing after Sens. Susan Collins, R-Maine, and Bernie Moreno, R-Ohio, held a meeting with lawmakers before leaving Washington, D.C., earlier this month.

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But Democrats are also making clear that they don’t want to budge on some of the Republicans’ demands.

“Let’s put it this way, Republicans are asking to meet with me, and I’m telling them, I’ll listen, you know, I made it clear what I think is the only practical approach, and I’m certainly not going to go along with selling junk insurance,” Sen. Ron Wyden, D-Ore., said.