Health Care Subsidies: A Political Tug-of-War

The Senate is in a tough spot. Republicans and Democrats are at odds over health care subsidies. Republicans want to let COVID-era subsidies expire and replace them with health savings accounts. Democrats want to extend the Affordable Care Act tax credits for three more years. Neither side has enough support to pass their plan. Republicans say the Democratic plan doesn't do enough to stop fraud or limit benefits for high earners. Democrats call the Republican plan a sham. Both sides blame each other for the likely failure to act. If nothing changes, millions could see higher premiums starting in January. This isn't new. Republicans have been divided for years on how to replace Obamacare. Now, they've united behind a plan from Senators Bill Cassidy and Mike Crapo. It would give money directly to people for health expenses. But critics say it won't help lower-income folks much. The plan also requires people to choose higher-deductible plans. This could leave some with big out-of-pocket costs. Democrats say it's a bad deal. They argue it leaves middle-class Americans with high premiums. The House is also divided. Moderate Republicans want to extend subsidies with reforms. The more conservative wing wants bigger changes. Speaker Mike Johnson hasn't decided if there will be a vote.