WASHINGTON – The Senate Health, Education, Labor, and Pensions Committee displayed interest in compromise Wednesday during a hearing on Affordable Care Act subsidies but failed to reach consensus as expiring enhanced subsidies loom with year-end deadlines approaching.
Republicans signaled they want an overhaul addressing rising deductibles and persistent out-of-pocket costs. Democratic committee members pressed for immediate renewal of the subsidies first approved during the pandemic.
Sen. Josh Hawley, R-Mo., said the issue demands urgent action by Congress. He cited projected premium increases affecting millions enrolled in ACA exchanges as a crisis requiring decisive measures to prevent hardship for families struggling with medical expenses.
Citing unaffordable deductibles effectively leaving many uninsured, Hawley proposed letting Americans deduct up to $25,000 in medical expenses – offering a GOP alternative focused on structural change rather than maintaining the current subsidy system. Committee Chair Bill Cassidy, R-La., countered that ACA exchanges impose barriers to care through high deducts and suggested using enhanced subsidy funds for government-backed health savings accounts.
The early bipartisan discussions between Cassidy and Sen. Bernie Sanders, I-Vt., quickly hit resistance as the debate over enhanced subsidies continued unresolved under a strained legislative timeline.
