President Joe Biden is pushing for an extension of the subsidy boost under the Affordable Care Act, also known as Obamacare, past its current expiration date in 2025. The enhanced subsidies under the American Rescue Plan and the Inflation Reduction Act, signed into law by Biden, have led to a record high enrollment of 45 million people in the ACA. Biden is calling on Congress to make the $800 expanded affordable health care tax credit permanent to prevent millions of Americans from losing coverage.
The outcome of the upcoming election will play a significant role in whether the ACA funding is extended. Biden views the subsidies as a key part of his legacy to protect, while his Republican opponent, Donald Trump, has not discussed the funding or offered an alternative health care plan. Trump has previously worked to roll back the ACA during his time in office, but failed to repeal the law’s insurance regulations and subsidies. Biden has criticized Trump’s efforts to dismantle the ACA, warning that a Republican victory could lead to the termination of the law and leave many Americans without health insurance.
The ACA provides tax subsidies for individuals up to 400% of the federal poverty level to obtain coverage. Biden and the Democratic-controlled Congress added a provision in 2021 to assist those above that level by capping premiums at 8.5% of an individual’s income. This policy has helped millions of people purchase insurance and lowered premiums for others. However, Republicans have been critical of the increased spending associated with these measures, with not a single Republican in Congress voting for the American Rescue Plan or the Inflation Reduction Act.
Trump has previously expressed his desire to replace the ACA with a health care plan that he believes would be much better and less expensive. He has not provided specific details on how he plans to achieve this or how to maintain key benefits of the ACA, such as protections for pre-existing conditions and tax credits for coverage, at a lower cost. Senate Minority Leader Mitch McConnell has stated that Trump would need to make a persuasive case to Republicans if he wants to revisit the issue of repealing the ACA, as it has been a contentious topic in the past.
As the election approaches, the future of the ACA and health care in the United States remains uncertain. Biden is advocating for the extension of ACA subsidies to ensure continued access to affordable health care for millions of Americans. Trump, on the other hand, has not offered a concrete health care plan and has instead focused on criticizing Biden’s economic policies. The outcome of the election will have a significant impact on the future of health care policy in the country and whether the ACA subsidies will be extended beyond their current expiration date in 2025.
