A new Democratic counterproposal attaching a one-year extension to expiring Obamacare subsidies alongside a package of funding measures to end the ongoing government shutdown has been rejected by Senate Republicans.
With pandemic-era subsidies for people buying health insurance on the Affordable Care Act’s marketplace set to expire at the end of the year, sharp premium hikes are expected for the most popular coverage plans in 2026, according to a recent analysis from The Washington Post.
Senate Minority Leader Chuck Schumer (D-N.Y.) made the new counteroffer as the federal closure entered its second month this week to become the longest in U.S. history, with Obamacare tax credits being a major sticking point.
“We would like to offer a simple proposal that would reopen the government and extend the ACA premium tax credits simultaneously,” Schumer said during a floor speech on Friday. “This is a reasonable offer that reopens the government, deals with health care affordability, and begins a process of negotiating reforms to the ACA tax credits for the future,” he added.
Democrats’ new proposal marked a shift from their earlier stance, which called for a permanent extension of Obamacare funding and a repeal of the Trump administration’s Medicaid cuts. However, Key Senate Republicans immediately panned the new offer, with Majority Leader John Thune (R-S.D.) calling it a “nonstarter.”
Sen. Lindsey Graham (R-S.C.) said that health insurers would unduly benefit from the Democrats’ proposal. “Another year of insane profits at the expense of consumers and American taxpayers,” he wrote on X, adding” Insurance companies love this idea.”
Elevance Health (ELV), UnitedHealth Group (UNH), CVS Health’s Aetna (CVS), Centene (CNC), Molina Healthcare (MOH), and Oscar Health (OSCR) are among the largest insurers with ACA marketplace businesses.
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