Senate Fails to Advance Plans on Expiring ACA Tax Credits, Impacting Millions
The U.S. Senate recently failed to advance two competing proposals aimed at addressing the expiration of enhanced Affordable Care Act (ACA) tax credits. These credits, initially part of the American Rescue Plan and the Inflation Reduction Act of 2021, are set to expire on December 31, 2025. The first proposal, led by Republican Senators Bill Cassidy and Mike Crapo, sought to redirect funds into health savings accounts for ACA marketplace enrollees, but it did not receive the necessary 60 votes, failing by a 51 to 48 margin. The second proposal, a Democratic initiative, aimed to extend the enhanced ACA subsidies for three years, capping premiums at 8.5% of income. This proposal also failed to advance, with a similar 51 to 48 vote. The expiration of these tax credits could result in millions of Americans facing doubled healthcare premiums.