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Deal to extend ObamaCare subsidies faces uphill battle despite GOP optimism

Republicans propose expanding health savings accounts as an alternative to costly ACA subsidies, which have reduced enrollees' out-of-pocket premiums from 36% to 17%, experts say.

  • Recently, Senate Republicans offered a fallback bill expanding health savings accounts as an alternative to pandemic-era premium subsidies, rejecting another long-term entitlement amid high federal debt.
  • During the COVID-era, subsidy rules expanded, and the out-of-pocket share for subsidized enrollees fell from about 36 to 17%, as noted by Tony LoSasso and Kosali Simon.
  • A General Accounting Office analysis found rampant enrollment fraud potentially costing American taxpayers billions, while analysts estimate extending subsidies could cost $500 billion over the next decade.
  • Democrats recently shut down the government for six weeks to pressure Republicans to extend temporary subsidies, but a bipartisan group of senators still believes a compromise is possible.
  • The Washington Post reported Stacy Newton's family in Jackson Hole could face a $43,000 premium if subsidies lapse, though buyers on ACA exchanges keep help codified in law.
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  • 67% of the sources are Center
67% Center

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The Hill broke the news in Washington, United States on Friday, December 26, 2025.
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