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House approves three-year extension of ACA subsidies
The US House of Representatives voted 230-196 on Thursday to renew pandemic-era healthcare subsidies for three years, with 17 Republicans breaking ranks to join all Democrats. The measure aims to lower insurance premiums for millions of Americans who purchase coverage through the Affordable Care Act (ACA) marketplace.
Subsidies expired, premiums surged
Tax credits that helped reduce monthly insurance costs for about 20 million Americans lapsed at the end of last year. Since then, premiums for ACA plans have more than doubled for some enrollees. The subsidies were initially introduced under former President Barack Obama in 2014 and later expanded during the Covid-19 pandemic.
Republican leadership loses grip on rank-and-file
House Speaker Mike Johnson had opposed renewing the subsidies, citing concerns over fraud. However, a group of moderate Republicans defied leadership by supporting a discharge petition last month, forcing the vote. The move marks a rare setback for Republican leadership, which holds only a slim majority in the House.
"We'd rather pass some kind of extension than do nothing at all," one centrist Republican lawmaker said.
Senate hurdles remain
The legislation faces an uncertain future in the Senate, where it lacks the 60 votes needed to advance. The upper chamber has already rejected the House measure once and is instead working on a separate bipartisan compromise, with details expected next week.
While the House vote is largely symbolic, it forces lawmakers to take a public stance on healthcare affordability ahead of November's midterm elections, where the issue is expected to play a key role.
Marketplace impact
Approximately 24 million Americans currently purchase health insurance through the ACA marketplace. Most relied on the now-expired subsidies to make monthly premiums more affordable.
