A group of GOP senators are working on legislation to extend Affordable Care Act subsidies with policy changes designed to win over conservatives, according to four people granted anonymity to disclose private discussions.
This group has gotten “technical assistance” from the Senate Finance Committee, which has jurisdiction over the subsidies, according to two of the sources. The Obamacare subsidies are set to expire at the end of this year.
Sen. Tommy Tuberville, an Alabama Republican running for governor, said in an interview Monday he was “part of that group that’s working on the wording to make sure we do it right.”
An expiration of the credits, he said, “would hurt my state, Alabama.”
The development comes as Democrats are mounting a huge push to make an extension of the enhanced tax credits necessary for them to support a bill that funds the government beyond Sept. 30. It also comes as a growing number of Republicans say failure to act on such an extension would be a political mistake heading into the midterms.
Congressional budget scorers estimate that millions of people would be forced to drop their health insurance plans as a result of higher premiums that could kick in as a result of the letting the subsidies sunset.
Twelve House Republicans have already joined with seven Democrats on a bill that would extend the credits for one year but not impose any new restrictions on who can take advantage of the subsidies. In contrast, the Senate bill, which is not being driven by leadership, appears to be in its early stages, according to two of the people aware of the effort.
Senate Majority Leader John Thune (R-S.D.) would only say in a brief interview that he is “aware” of work within the conference on a GOP proposal to extend the subsidies, adding that there are a “number of folks that are engaged in these conversations.”
It also remains unclear which GOP senator is spearheading this effort, and which Republicans other than Tuberville are at the table. Sen. Lisa Murkowski (R-Alaska), in an interview Monday, said she wasn’t aware of Tuberville’s endeavor but that she was “working with a small group of Republicans to see if we can lay down something that is viewed as amenable to both Republicans and Democrats.”
“I don’t think we’re going to be able to get a permanent extension; I don’t think that’s wise,” she said. “I’m looking to perhaps do some some reforms to it, but I think it is something that we are going to be forced to deal with, to reckon with, in my state.”
At the same time, Murkowski noted, “If we put down something that works just for the Republicans, you tell me how we’re going to make this happen.”
Murkowski added she has long been working on the issue with Sen. Jeanne Shaheen (D-N.H.), who authored the legislation that first boosted the credits in 2021. Shaheen also has been talking to Republican colleagues about where their party might be able to land on the issue, according to a person granted anonymity to share confidential conversations between lawmakers. She’s also encouraging Republicans to work behind-the-scenes to build support inside their conference.
“There are still many questions still left to sort out,” the person added.
If the proposal comes to fruition, it could emerge as a consensus measure for Republicans: Conservatives are broadly in favor of tying some reforms to the subsidies they claim are currently wasteful, expensive and overwhelmingly benefit higher-earners.
Among the floated ideas include putting a new income cap on who can claim the bigger subsidies, while some outside groups are expected to push for language that would prohibit the tax credits from helping offset cost of insurance plans that cover abortions.
It’s not clear Democrats would accept terms and conditions for extending the tax credits, but Shaheen, in a statement, said any discussions across the aisle were a positive development.
“I’m glad that some of my Republican colleagues recognize the need to get something done to avoid the largest health insurance premium price increases in 15 years — which would boot more than four million Americans from their health care and make costs skyrocket for millions more,” she said. “If Senate Republicans fail to come to the table in a meaningful way, they’ll have to explain to their constituents why they took away a tool to make health care affordable for working families at a time when too many are struggling to make ends meet.”
She added, “The only way we will avoid this bad outcome is if Republicans will come to the table in good faith so we can find a path forward.”
Senate Finance Chair Mike Crapo (R-Idaho) also acknowledged in an interview that Republicans will likely need to address the issue: “I believe at some point we’re going to need to deal with it.”
He’ll have to contend with Finance members like Sen. Ron Johnson (R-Wis.), who griped on social media Monday evening that an extension would “perpetuate fraudulent activity, sending billions of dollars to insurance companies for policies that people are unaware they’re enrolled in and do not use.”