The federal government’s shutdown centers around Democrats insisting that any deal addressing their health care demands and Republicans saying those negotiations can wait until the government is funded.
The U.S. government shut down Wednesday, with Democratic lawmakers insisting that any deal address their health care demands and Republicans saying those negotiations can happen after the government is funded.
At issue are tax credits that have made health insurance more affordable for millions of people since the COVID-19 pandemic. The subsidies, which go to low- and middle-income people who purchase health insurance through the Affordable Care Act, are slated to expire at the end of the year if Congress doesn’t extend them. Their expiration would more than double what subsidized enrollees currently pay for premiums next year, according to an analysis by KFF, a nonprofit that researches health care issues.
Democrats have demanded that the subsidies, first put in place in 2021 and extended a year later, be extended again. They also want any government funding bill to reverse the Medicaid cuts in President Donald Trump’smega-bill passed this summer, which don’t go into effect immediately but are already driving some states to cut Medicaid payments to health providers.
Some Republicans have expressed an openness to extending the tax credits, acknowledging many of their constituents will see steep hikes in insurance premiums. But the party’s lawmakers in Congress argue negotiations over health care will take time, and a stopgap measure to get the government funded is a more urgent priority.Health insurance rates will skyrocket for millions without congressional action
A record 24 million people have signed up for insurance coverage through the ACA, in large part because billions of dollars in subsidies have made the plans more affordable for many people.
