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Sanders Sounds The Alarm As ACA Subsidy Showdown Looms

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Bernie Sanders
Photo Credit: "Bernie Sanders" by Gage Skidmore is licensed under CC BY-SA 2.0. To view a copy of this license, visit https://creativecommons.org/licenses/by-sa/2.0/?ref=openverse.

Sen. Bernie Sanders issued a stark warning about the future of Affordable Care Act subsidies, as lawmakers scramble over whether to extend financial support millions of Americans rely on.

During an interview on CNN, Sanders called the situation a “tragedy,” adding that the public “are not prepared” for what will happen if the subsidies are allowed to lapse at the end of the month.

His worry centers on the likelihood that premiums will surge without congressional intervention, a shift that critics say could hit working families hardest.

While Sanders pleaded for quick action, Republicans signaled they are not convinced continuing the enhanced subsidies is the right path.

Sen. Roger Marshall, speaking on Newsmax, predicted that the subsidies will likely expire, saying that “some people’s premiums are going to go up some” once the additional support disappears.

Marshall reminded viewers that ObamaCare passed with only Democratic votes, arguing that responsibility now lies with Democrats to fix what he views as structural problems in the law.

Marshall insisted that extending subsidies is not the only path forward. Pointing to the prolonged shutdown earlier this year, he faulted Democrats for wasting time, arguing that “this problem was not created overnight” and cannot be solved immediately either.

He acknowledged that premiums might rise, but insisted alternative solutions must be considered.

The Senate now faces a pivotal vote. Democrats will push a proposal to prolong the subsidies for three years, while Republicans plan to present a competing version built around health savings accounts.

Senate Democratic Leader Chuck Schumer intends to put forth a bill to extend the pandemic-era tax credits backed by the Inflation Reduction Act.

However, Republicans say the proposal is unlikely to earn the votes needed to pass.

Sen. John Thune suggested Monday that Democrats are using the vote as a political display rather than a genuine effort to craft a bipartisan compromise, saying their plan is “a political messaging effort” meant to score points rather than solve the underlying issue.

Thune added that Republicans may not advance a separate health care package during Thursday’s vote.

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Even so, multiple GOP senators have floated alternative frameworks. Sens. Susan Collins and Bernie Moreno introduced legislation to extend the subsidies for two years while adding income caps to prevent high earners from qualifying.

Another group, led by Sens. Bill Cassidy and Mike Crapo, proposed shifting subsidies away from insurers and into health savings accounts tied to lower-cost bronze or catastrophic plans. That proposal will also be considered in Thursday’s vote.

Sen. Josh Hawley urged his party to consider a temporary extension if long-term negotiations cannot be completed in time.

He argued that letting everything expire without a backup plan would be a “recipe for disaster” for families trying to navigate higher health care costs.

Hawley declined to say whether he would support Schumer’s three-year extension, predicting it will not clear the Senate.

Across the Capitol, House Republicans are preparing to unveil their own ideas.

House Majority Leader Steve Scalise said GOP leaders will present health care priorities to the full conference in an effort to identify items that could earn consensus for votes next week.

Scalise described recent meetings with committee chairs and rank-and-file members as productive, saying Republicans are trying to unify around specific legislative proposals.

According to Scalise, committees with jurisdiction over health care have already drafted numerous bills, some of which have cleared early procedural steps.

He said Wednesday’s conference meeting will be an opportunity to determine which proposals have broad support and which require further work heading into next year.

Asked whether extending ACA subsidies would be part of those discussions, Scalise said it would “surely” be included in the conversation, though he did not commit to backing an extension.

In the House, the newest push to continue the subsidies comes from Rep. Brian Fitzpatrick, who introduced legislation to prolong them for two years while tightening eligibility standards.

Fitzpatrick framed his proposal as a “practical, people-first fix” designed to protect families now while allowing time for more comprehensive reforms.

The bill adds income limits and expands access to health savings accounts, and it also requires even low-income recipients to contribute a small monthly premium to address concerns about fraud in zero-premium plans.

Fitzpatrick’s effort has already garnered bipartisan support. Several Republicans, including Reps. Don Bacon, Rob Bresnahan, and Nicole Malliotakis, have endorsed the measure, along with Democrats such as Reps. Jared Golden, Tom Suozzi, Marie Gluesenkamp Perez, and Don Davis.

If Congress fails to act before December 31, premiums for millions of Americans will increase dramatically.

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