House passes bill to extend enhanced ACA subsidies 3 years

The House of Representatives passed a bill Thursday giving a three-year extension to enhanced subsidies for those who buy health insurance on the Affordable Care Act marketplace.

Seventeen Republicans joined all House Democrats in supporting the measure, which would restore the enhanced subsidies that expired Dec. 31, 2025, amid disagreement in Congress over whether to extend them.

The issue was forced to a vote after a handful of Republicans signed on to a so-called “discharge petition” to unlock debate, bypassing objections from House Speaker Mike Johnson.

The bill now goes to the Senate, where a bipartisan group of senators are attempting to make progress on a bill that could extend the credits while instituting new income caps for eligibility and lengthening the ACA open enrollment period to soften the blow of premium hikes.

The Inflation Reduction Act of 2022 extended the enhanced ACA subsidies — originally created under the 2021 American Rescue Plan — through the end of 2025. These subsidies were designed to make health insurance more affordable for millions of Americans purchasing coverage on the ACA marketplaces.

The expiration of the enhanced subsidies means that ACA marketplace premiums more than double for those who depend on them to afford coverage. One in three enrollees (32%) told a KFF survey they are very likely to shop for a lower-premium plan (with higher deductibles and out-of-pocket costs) and one in four (25%) say they would be very likely to go uninsured.

Ahead of voting, the nonpartisan Congressional Budget Office estimated that the bill, which would provide a three-year extension of the subsidy, would increase the nation’s deficit by about $80.6 billion over the decade. At the same time, it would increase the number of people with health insurance by 100,000 this year, 3 million in 2027, 4 million in 2028 and 1.1 million in 2029, the CBO said.

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Susan Rupe is editor in chief, magazine, for InsuranceNewsNet. She formerly served as communications director for an insurance agents' association and was an award-winning newspaper reporter and editor. Contact her at [email protected].