Site icon World's first weekly chronicle of development news

Restoring health subsidies

Restoring health subsidies
Blitz Bureau

NEW DELHI: The Republican-controlled US House of Representatives on January 8 passed Democratic-backed legislation that would restore expired health insurance subsidies, as millions of Americans face significant price hikes for coverage.

The Republican-controlled Senate has already rejected a similar bill, but House passage could spur a compromise. Senate negotiators are weighing proposals that would extend the subsidies for less than three years, limit coverage to people below a certain income level, and soften abortion limits sought by conservatives.

The House voted 230-196 to approve the measure, with 17 Republicans joining Democrats, who cheered on its passage, a Reuters report said. Opinion polls show “affordability” is a top voter concern, and lawmakers are looking to take action to limit price increases ahead of November elections that will determine control of the Congress.

“Democrats are going to make healthcare and the high cost of living the number one issue for all of 2026,” Senate Democratic Leader Chuck Schumer said at a press conference.

The Congress allowed tax breaks that had benefited 24 million Americans who got their coverage through the Affordable Care Act to expire at the end of 2025. Restoring those subsidies would lead to 6.2 million more people enrolled in the programme and cost the government $80.6 billion over 10 years, according to the nonpartisan Congressional Budget Office.

The Affordable Care Act, nicknamed “Obamacare,” became law in 2010 over Republican opposition and the subsidies were passed in 2021 in response to the COVID-19 pandemic without any Republican votes.

Striking victory

The House vote amounts to a striking victory for Democrats, who triggered a record 43-day government shutdown last autumn in an unsuccessful effort to extend the subsidies, and a rebuke to House Speaker Mike Johnson. Americans have until January 15 to enroll in ACA coverage for this year, although the Trump administration could extend that deadline.

Exit mobile version