Truthout is a vital news source and a living history of political struggle. If you think our work is valuable, support us with a donation of any size.
Speaker of the House Mike Johnson (R-Louisiana) announced on Tuesday that the House of Representatives will not hold a vote by the end of this year on extending tax credits for qualified Affordable Care Act (ACA) recipients who receive insurance through the program’s marketplaces.
The decision not to hold a vote means that the expiration of the tax credits — which will result in tremendous hikes in premium costs for those who previously received them — is all but certain.
Johnson cited disagreements within the GOP conference as the reason why a vote couldn’t be held, claiming there was no consensus from Republican lawmakers on how to address the inevitable price increases.
“There’s about a dozen members in the conference that are in these swing districts who are fighting hard to make sure they reduce costs for all of their constituents. … We looked for a way to try to allow for that pressure release valve, and it just was not to be,” Johnson told reporters.
One of those swing district Republicans, centrist Rep. Mike Lawler (R-New York), expressed deep frustration with the announcement.
“I am pissed for the American people. This is absolute bullshit, and it’s absurd,” Lawler said in remarks to NBC News.
Although Lawler blamed both Republican and Democratic leadership teams for the impasse, Lawler added that it would be “idiotic” to withhold a vote on renewing tax credits.
Among the sticking points within a Republican conference meeting was how to fund the tax credits. Centrists within the party were told no vote could happen unless they found ways to cut federal spending by $35 billion, roughly the cost of tax credits.
Johnson suggested a reconciliation bill could be passed early next year to address the higher costs for current tax credit recipients on the health exchange, which would allow a bill to pass without being blocked by a Senate filibuster. But it’s likely the Republican plan wouldn’t extend tax credits and would instead provide qualified applicants with direct health savings accounts (HSA) payments.
Last week, Johnson promised a health package that would “reduce premiums for 100 percent of Americans who are on health insurance,” but didn’t elaborate on the details of the legislation.
Critics have pointed out that such a plan would merely shift costs for participants by forcing them into entering low-premium plans on the exchange that have high deductibles.
Such a plan is “little more than junk insurance,” Senate Minority Leader Chuck Schumer said in discussing a Senate version of the idea earlier this month. “It is no real plan at all.”
The failure of House Republican leaders to allow a vote on extending ACA tax credits is prompting many lawmakers within the party to sign onto one of two discharge petitions, which would allow the vote to take place if at least 218 signatures are obtained.
One of those discharge petitions, sponsored by Democrats, would extend tax credits for qualifying ACA marketplace recipients for two years. The other petition seeks to do that, too, but places stricter income rules on who can qualify. Both petitions have already received roughly the same number of signatures from Republican lawmakers, about a dozen, although the Democratic-led petition has more lawmakers from their own party attached to the plan.
Both measures would have to garner enough support from Republicans in the Senate, where a filibuster could block either or both proposals. It’s also unclear whether President Donald Trump would sign such a bill into law.
Health insurance premiums will increase, on average, by about 114 percent for ACA marketplace participants who previously received tax credits. Around 22 million Americans are part of the program.
For most, that will mean costs of around $1,000 more that will have to be paid out. But for many others, it could be much higher — for an individual earning $28,000 per year, for example, the expiration of the tax credits could increase their premiums by $1,562.
A survey conducted by KFF earlier this month found that 58 percent of people who are currently on the ACA marketplaces said they could not afford even a $300 increase to their yearly health costs, with another 20 percent saying they couldn’t afford a $1,000 increase.
Media that fights fascism
Truthout is funded almost entirely by readers — that’s why we can speak truth to power and cut against the mainstream narrative. But independent journalists at Truthout face mounting political repression under Trump.
We rely on your support to survive McCarthyist censorship. Please make a tax-deductible one-time or monthly donation.