A bipartisan group of senators is making a desperate last-minute attempt to salvage health care subsidies for 24 million Americans, even as they acknowledge time has effectively run out before the December 31 deadline. The Senate rejected competing proposals
from both Democrats and Republicans last week, leaving millions facing catastrophic premium increases starting January 1. Neither bill secured the 60 votes needed to advance, effectively guaranteeing steep cost hikes for Affordable Care Act enrollees.
Maine Republican Senator Susan Collins, leading the bipartisan negotiations, said a vote could occur in early 2026. She indicated this might trigger a new or expanded open enrollment period for people using Obamacare exchanges.
Premium Costs Set to Double
Without congressional action, Americans relying on enhanced ACA subsidies will see their insurance costs more than double in 2026.
The subsidies, which currently keep premiums at $888 annually on average, will disappear at year's end. Enrollees would face an average of $1,904 in annual premium payments—a 114% increase.
Approximately 22 million people, representing 92% of all ACA marketplace enrollees, depend on these enhanced tax credits to afford coverage.
Political Deadlock Persists
Democrats proposed a three-year extension of existing subsidies, garnering 51 votes but falling short of the required threshold. Four Republicans—Susan Collins, Josh Hawley, Lisa Murkowski, and Dan Sullivan—crossed party lines to support the measure.
Republicans offered an alternative focused on health savings accounts, which also failed to advance.
This healthcare crisis echoes previous congressional battles over medical coverage, similar to the debates that emerged during the measles outbreak response earlier this year.
Trump Administration Weighs In
President Trump is reportedly considering a two-year extension with significant restrictions. The proposal would cap eligibility at 700% of the federal poverty level and eliminate zero-dollar premiums, potentially setting a minimum monthly cost of $5.
Congress departed for its holiday break last week and won't reconvene until January 5, after new premium rates have already taken effect.
Senator Collins remains cautiously optimistic that retroactive relief could still assist affected families in early 2026.
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