• Average premium increase of 97% looms for Californians buying coverage through ACA marketplace
• Four Republicans join Democrats in petition demanding vote on three-year subsidy extension
• GOP congressman blasts House Speaker Johnson for refusing floor vote on credit extensions

WASHINGTON, D.C. (TDR) — The House passed a Republican health care plan Wednesday by a narrow 216-211 vote, but the legislation offers no relief for the Obamacare subsidies expiring at the end of December that currently help 22 million Americans afford their health insurance premiums.

The GOP bill, which aims to lower costs through various market-based reforms, faces almost certain defeat in the Senate where it would require Democratic support for consideration. Meanwhile, the enhanced premium tax credits that have kept Affordable Care Act coverage affordable for millions will lapse on December 31 with no extension in sight.

Obamacare Subsidies Expiring Means Massive Premium Hikes

The impending expiration of enhanced ACA tax credits will hit consumers hard when the new year arrives. Californians who purchase coverage through the Obamacare marketplace face an average premium increase of 97 percent, with approximately 1.8 million state residents directly affected.

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Nationally, subsidized enrollees would see their premium payments more than double on average, rising by 114 percent according to KFF analysis. Some consumers currently paying nothing for coverage will suddenly face bills of $1,600 or more annually.

“I have been extremely critical of the House speaker for refusing to put any measure to extend these tax credits on the floor. I think that criticism right now is more well deserved than ever.”

That rebuke came from Rep. Kevin Kiley, a California Republican who took the unusual step of publicly criticizing House Speaker Mike Johnson during floor debate over the party’s handling of the subsidy extension issue.

Republicans With Tough Elections Push for Extension

Several Republicans facing competitive races have pushed aggressively for action on the expiring credits. Four GOP members joined 214 Democrats in signing a discharge petition demanding a vote on a three-year extension, reaching the 218 signatures needed to force floor consideration.

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Rep. David Valadao, a California Republican who has been a top negotiator on the issue, said he supports the petition despite preferring a shorter extension with reforms attached.

“It isn’t perfect, but it gives Congress the time necessary to work toward a more permanent solution.”

Valadao acknowledged the temporary fix does not solve underlying affordability problems but argued lawmakers cannot allow the Obamacare subsidies expiring without any plan in place.

Kiley declined to sign the three-year petition, calling it a messaging exercise with no chance of becoming law. He has backed shorter one- or two-year extensions that include program reforms.

Senate Path Remains Unclear

A similar effort failed in the Senate last week, falling nine votes short of the 60 needed for consideration. Senate Majority Leader John Thune offered little clarity on how dynamics might change when Congress returns January 5.

The South Dakota Republican suggested Democrats would need to accept changes that “put more power and control and resources in the hands of the American people and less of that in the pockets of the insurance companies” for any deal to materialize.

Bitter Partisan Divide on Display

Wednesday’s floor debate offered little hope for quick bipartisan progress. The Republican health care bill would make it easier for small businesses and employers to create association health plans for risk sharing and provide federal aid directly to lower-income individuals for premium assistance.

Democrats dismissed the approach entirely. Rep. Doris Matsui of Sacramento called it “this sham of a bill” and said Republicans “should be ashamed.”

Rep. Jodey Arrington of Texas defended the GOP plan as one that would “provide federal assistance to the people, not the insurance agencies, and give the private market more competition and transparency.”

Kiley expressed frustration with both parties, saying the standoff “encapsulates what is wrong with this institution, where party leaders focus most of their time and energy on trying to blame problems on the other side rather than trying to solve those problems.”

With Congress adjourning for the holidays and millions of Americans facing doubled premiums in January, will lawmakers find the political will to act before the damage is done?

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