US House Expands Healthcare Subsidies; Bill Fights In Senate

Seventeen moderate Republicans in the US House of Representatives have joined the Democrats to pass a bill that would extend healthcare subsidies for millions of Americans.

This group of Republicans joined in an attempt to help approve the measure by 230-196, but the legislation may struggle to pass in the Senate.

House Speaker Mike Johnson had opposed a renewal of the pandemic-era tax credits, arguing they are rife with fraud, but much of this argumentation resulted in a forced vote.

Insurance premiums through the Affordable Care Act (ACA), also known as Obamacare, have more than doubled for some 20 million Americans since the subsidies expired at the end of last year.

The measure passed would extend the Covid-era subsidies for another three years. Centrist Republicans have stated that they would rather support some kind of extension than do nothing at all. Those subsidies (also known as tax credits) were first introduced through former President Barack Obama's ACA in 2014 and were then expanded during Covid.

About 24 million Americans buy health insurance through the ACA marketplace, and the majority were used to receiving tax credits to lower the monthly price.

The bill's passage is a setback for House Republican leadership, which controls the lower chamber of Congress by a narrow majority. The vote was forced when four members of the Republican defected last month to support a procedural tactic known as a discharge petition.

The Senate has already rejected the measure, so the House measure does not have to be brought up there.

Even if the legislation was brought back to the upper chamber of Congress, it does not currently have the 60 votes it needs to pass. Senators have said they are working on their own bipartisan compromise.

Though the House vote was largely symbolic, it places lawmakers on the record ahead of this November's midterm elections, when healthcare and affordability are likely to be hot campaign issues.

The House vote was symbolic, but it places lawmakers on the record ahead of this November's midterm elections, when healthcare and affordability are likely to be major campaigning topics.