Healthcare Update
Monday marked the final day for individuals to enroll in ACA health exchanges for 2026. Congress has yet to reach a consensus on the future path. Enhanced premium tax credits are set to expire at the end of this month, leading to significant premium increases next year.
As previously discussed, the key obstacles to a bipartisan agreement on reducing healthcare costs include disengagement from the White House, a lack of Republican unity on a solution, and minimal incentive for Democrats to negotiate under the current circumstances.
Last Thursday, the Senate voted on two proposals to address the rising healthcare premiums anticipated next year. The Democratic bill, pursuant to the November agreement to reopen the government, aimed to extend the enhanced premium tax credits for three years without implementing any reforms. Although four Republicans—Sens. Collins (R-ME), Hawley (R-MO), Murkowski (R-AK), and Sullivan (R-AK)—supported the bill, it failed to achieve the 60 votes necessary to advance.
Senate leadership proposed an alternative Republican bill introduced by Sens. Crapo (R-ID) and Cassidy (R-LA), which sought to expand health savings accounts and provide funding for individuals' healthcare expenses. This measure also fell short of the required 60 votes, with Sen. Paul (R-KY) being the only Republican to vote against it, while all Democrats opposed it.
In the House, Speaker Johnson (R-LA) unveiled a Republican healthcare proposal on Friday, the 12th. The bill contains provisions aimed at increasing transparency from pharmacy benefit managers, funding cost-sharing reductions to help low-income enrollees in the ACA exchanges afford their premiums, allowing small businesses to pool together to offer health insurance via association health plans, and expanding employers’ ability to purchase stop-loss policies to protect against bankruptcy risks from unexpectedly high insurance claims. These provisions have previously passed in the House. Leadership intends to bring the bill to the floor under a rule allowing it to pass by a simple majority vote.