White House delays Obamacare subsidy plan rollout
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The White House has postponed the rollout of a new GOP plan on Affordable Care Act subsidies amid pushback from Republicans in Congress.
Why it matters: The issue could aggravate already frayed relationships with Hill conservatives who oppose an extension of enhanced tax credits that are due to expire at the end of the year.
Driving the news: Some lawmakers were blindsided by reports of a plan to address spiking premiums in ACA markets and calls for a short-term renewal of the aid, MS NOW reported on Monday.
- Trump is having ongoing conversations with members of his administration, members of Congress, and private sector experts, White House press secretary Karoline Leavitt said in a statement, adding he is not considering a straight subsidy extension.
- "He will make recommendations for healthcare policy improvements in the near future," Leavitt said.
- Spokespeople for Senate Majority Leader John Thune (R-S.D.) and Speaker of the House Mike Johnson (R-La.) did not respond to requests for comment.
Trump's draft proposal, according to people familiar, would put an income limit on ACA premium tax credits and eliminate $0 premium plans, which Republicans say contribute to fraud.
- People who downgrade their coverage on the ACA and buy a lower-premium plan could get access to a health savings account funded by taxpayer dollars.
Zoom in: The Committee for a Responsible Federal Budget estimates that a proposal with the details that have been reported could cost about $50 billion over two years.
- But the cost could be offset if certain policy changes, like those affecting a form of ACA aid called cost-sharing reductions, are made permanent, per an email from CRFB.
Between the lines: Some Democrats who made a subsidy extension the centerpiece of the recent government shutdown fight said they are willing to negotiate with Trump and GOP lawmakers on a path forward.
- "While I have significant concerns about some of the ideas reportedly in the president's proposal, it nonetheless represents a starting point for serious negotiations," Sen. Maggie Hassan (D-N.H.) said in a statement.
This story has been updated with further comment from the White House.
