Democrats seek one-year extension of Obamacare subsidies in new proposal to end shutdown
Senate Democrats are offering a new proposal to end the government shutdown that would include a one-year extension of enhanced Obamacare premium subsidies that are set to expire this year.
Senate Minority Leader Charles E. Schumer, New York Democrat, outlined the Democratic offer in a floor speech Friday. They want to include the one-year extension of the enhanced Obamacare subsidies in a stopgap bill to fund the government, and then start a working group to work on a longer-term health care plan.
“The Senate could do this within a few hours,” Mr. Schumer said. “This is a reasonable offer.”
The Senate minority leader said the plan honors Republicans’ request not to start health care negotiations until after the shutdown by simply extending current law for one year.
Democrats are willing to negotiate “reforms” to the subsidies, as Republicans want, for future years after the shutdown ends, Mr. Schumer said.
During the COVID-19 pandemic, Democrats expanded premium tax credits used to subsidize Obamacare coverage to further limit consumers’ out-of-pocket costs, currently capped at 8.5% of household income. The expansion also allowed individuals and families earning above 400% of the federal poverty level to access them.
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Those pandemic enhancements to the subsidies are set to expire this year, and average consumer premium costs will more than double if Congress does not act. Obamacare open enrollment began last Saturday.
The Democratic proposal “reopens the government and ensures working families who are shopping right now for their health care get certainty and financial relief,” Mr. Schumer said.
