Health insurance premiums to rise as Obamacare deal remains elusive

WASHINGTON – Congress has run out of time to extend the Obamacare subsidies that will expire at the end of the year, meaning health insurance premiums are about to go up for millions of Americans.

That reality became clear after a last-minute effort failed among Republicans in the House of Representatives who had hoped to trigger a vote on the tax credits, said Speaker Mike Johnson on Dec. 16. Though roughly a dozen moderate GOP lawmakers worked on the issue last weekend as Congress prepares to depart for the holidays, Johnson told reporters no consensus was reached.

"Many of them did want to vote on this Obamacare COVID-era subsidy the Democrats created," Johnson said in the Capitol. "We looked for a way to try to allow for that pressure release valve, and it just was not to be."

The top congressional leader's acknowledgment virtually guaranteed the impending conclusion of subsidies for the Affordable Care Act, commonly known as Obamacare, affecting roughly 22 million Americans. Once they run out at the end of the year, the average enrollee who receives tax credits on the Obamacare marketplace will see their premiums double, according to KFF, a nonpartisan health policy research group.

Among other reasons for the GOP's opposition to extending the credits – including reining in federal spending more broadly – Johnson pointed to a report from a nonpartisan watchdog, the Government Accountability Office, that identified persistent fraud risks in the program.

On Dec. 11, a bill that would have continued the COVID-era subsidies for three years failed to advance in the Senate. All Democrats and four Republican senators voted to support it, but the measure didn't reach the 60-vote threshold needed to pass that chamber.

The House was still expected to vote on a separate Republican-backed bill aimed at more generally overhauling the health care system. That legislation would allow businesses to group themselves together to get health insurance. It also pledges to provide funding in 2027 to reduce out-of-pocket costs.

"I hope the Democrats will come along with us," Johnson said. The new bill isn't likely to ultimately pass Congress without addressing Obamacare subsidies.

Senate Minority Leader Chuck Schumer, D-New York, criticized the speaker when he discovered his counterparts in the House wouldn't hold an Obamacare vote.

"Johnson said it 'just was not to be,'" Schumer said. "Well, tell that to an American family that's got to pay $500 to $1,000 more a month for their health care."

Zachary Schermele is a congressional reporter for USA TODAY. You can reach him by email at [email protected]. Follow him on X at @ZachSchermele and Bluesky at @zachschermele.bsky.social.