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Members of Congress left Washington D.C. for the year on Dec. 18 without passing legislation to extend Affordable Care Act enhanced premium tax credits, the subject of intense wrangling in recent months. The enhanced benefit will expire Dec. 31 after a failed vote in the Senate and the refusal by the House GOP leadership to allow a vote on an extension. However, a handful of House Republicans broke with the party to join Democrats in forcing a January vote.
The Senate on Dec. 11 voted on two competing bills intended to address consumer healthcare costs, but neither cleared the necessary 60-vote hurdle for passage. All but one Republican supported legislation proposed by Senate Finance Committee Chair Mike Crapo, R-Idaho, and Sen. Bill Cassidy, R-La., to replace the expiring subsidies with age-based health savings account (HSA) deposits for consumers in lower-tier ACA Marketplace plans. A bill from Democrats to extend the current enhancements for three years attracted four Republicans but also failed.
While Senate Majority Leader John Thune, R-S.D., promised Democrats a December vote on their proposal as part of the deal to reopen the federal government in November, House Speaker Mike Johnson, R-La., did not make the same commitment. This led House Democrats to push a discharge petition, a process that allows the minority to force a vote on legislation if 218 House members sign it.
Four GOP members who argue that allowing the enhanced tax credits to expire will harm their constituents — Reps. Brian Fitzpatrick, Rob Bresnahan and Ryan Mackenzie of Pennsylvania, and Rep. Mike Lawler of New York — signed the petition filed by House Minority Leader Hakeem Jeffries, D-N.Y., after House Republican leaders refused to allow a floor vote on an extension. The House instead passed a GOP bill Dec. 18 by a vote of 216-211 — with no Democrats in favor — that would expand access to association healthcare plans, place restrictions on pharmacy benefit managers, and lower premiums for some consumers while raising them for others.
The rules governing the discharge petition mean that there will be a vote on a three-year extension shortly after the House reconvenes in January.
Grant Thornton insight:
If a bill extending the enhanced tax credits passes the House next year, it will still have an uphill battle in the Senate, but Democrats hope that passage would put pressure on GOP leaders in the upper chamber to allow some type of extension. Various groups of rank-and-file members on both sides of the Capitol have been collaborating for weeks in the hopes of finding a bipartisan path forward.
After we fail, I like to think we succeed,” said Sen. Lisa Murkowski, R-Alaska.
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