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In addition to the three‑bill spending package, the House considered the clean three-year extension of the Obamacare enhanced subsidies. I voted against it, and here’s why.
First, let me level-set. People who purchase health insurance through the Affordable Care Act (ACA) marketplace have been eligible for tax credits to lower their monthly premiums since 2014, provided they meet certain criteria. That benefit is not going away.
As I have outlined in this newsletter before, Congress temporarily enhanced these subsidies during the pandemic by removing the maximum income cap of 400 percent of the poverty level, in addition to increasing the value of the subsidy. Democrats later extended these enhancements and set the expiration for the end of 2025.
To emphasize: There is NO maximum income cap for these enhanced subsidies. The expiration of these enhanced subsidies effectively reinstates the maximum income cap, so individuals making up to 400 percent of the poverty level are still eligible for the original tax credits to reduce their premiums.
The House was forced to vote on a clean three-year extension of these enhanced COVID-era subsidies without any reforms or guardrails. Doing so would be both an irresponsible use of taxpayer dollars and ineffective in addressing the long-term problem of rising healthcare costs.
Nevertheless, the House, led largely by Democratic support, voted to extend the enhanced subsidies, sending the measure to the Senate. I discuss what I think the Senate will do in CFTC. |