Tammy Baldwin, Senate Dems push GOP for extension of expiring health care subsidies

U.S. Sen. Tammy Baldwin | Photo by Shauneen Miranda/States Newsroom
WASHINGTON — A trio of Senate Democrats urged Republican lawmakers at a Tuesday press conference to extend and make permanent the enhanced Affordable Care Act tax credits set to expire at the end of 2025.
Senate Minority Leader Chuck Schumer of New York, along with Sens. Tammy Baldwin of Wisconsin and Jeanne Shaheen of New Hampshire, warned that the expiration of these credits would lead to “skyrocketing” costs for millions of enrollees unless the GOP-controlled Congress takes action.
The credits are used by people who buy their own health insurance through the Affordable Care Act Marketplace.
Stopgap spending bill
The extension is among congressional Democrats’ broader health care demands in order to back any stopgap funding bill to avert a government shutdown before the next fiscal year begins Oct. 1.
House GOP leadership did not negotiate with Democrats on the seven-week stopgap funding bill released on Tuesday.
Schumer, alongside House Minority Leader Hakeem Jeffries of New York, said in a joint statement Tuesday that “the House Republican-only spending bill fails to meet the needs of the American people and does nothing to stop the looming healthcare crisis.”
They added that “at a time when families are already being squeezed by higher costs, Republicans refuse to stop Americans from facing double-digit hikes in their health insurance premiums.”
At the press conference, Baldwin called for legislation she and Shaheen introduced earlier this year that would make the enhanced premium tax credits permanent to be included in the stopgap government funding bill.
“Time is of the essence — families and businesses are planning for next year, and we need to get this done,” Baldwin said. “The only question is whether Republicans will join us and stand for lower costs for families or not.”
Shaheen said that “as we near the deadline for government funding, I hope that our colleagues here in Congress will join us, that they will act to extend these tax credits and to keep health insurance affordable for millions of Americans.”
Premiums expected to soar without action
The enhanced premium tax credits, established by Democrats in 2021 as part of a massive COVID-19 relief package, were extended in 2022 through the Inflation Reduction Act. They are set to expire at the end of 2025.
Premiums, on average, for enrollees would soar by more than 75% if the credits expire, according to the nonpartisan health research organization KFF.
House Speaker Mike Johnson, R-La., said Tuesday at a press conference that “Republicans have concerns” about the credits because they have no income cap and certain high-income people can qualify for them. He also said Congress has until the end of the year to decide what to do.
At the Democrats’ press conference, Schumer said President Donald Trump “has taken a meat ax to our health care system,” adding that “it’s vicious, it’s cruel, it’s mean” and pointing to some of the repercussions of the GOP’s mega tax and spending cut law on Medicaid recipients.
Meanwhile, open enrollment begins in November, meaning Congress would have to act before the end of the calendar year to avoid premium spikes.