- 2025 ends with key healthcare debates unresolved after the shutdown left no clear path forward.
- Democrats want to make pandemic-era Obamacare subsidies permanent, while Republicans argue they are inappropriate or unsustainable and remain divided on alternatives.
- Sen. Cassidy proposes directing funds to Americans’ HSAs, while Rep. Fitzpatrick offers a narrower ACA tax-credit extension with income limits, minimum premiums, and added HSA flexibility.
- Meetings with lawmakers suggest little chance of a resolution before the Dec. 15 open-enrollment deadline, and STS is closely monitoring developments while advancing its advocacy priorities.
As we close out another legislative year, we are left with uncertainty about key healthcare-related initiatives. While the debate over Obamacare subsidies and rising health insurance premiums came into sharp focus over the course of the recent federal government shutdown, the standoff ended without a clear path forward.
Democrats in the House and Senate argue that the enhanced Obamacare subsidies implemented during the pandemic should be made permanent to help Americans pay for the skyrocketing costs of care. Some Republicans, however, counter that continuing the pandemic subsidies is not appropriate and financially unsustainable. There are competing Republican visions on how to proceed.
Senator Bill Cassidy (R-LA), chairman of the Senate Health Labor and Pensions Committee, has floated legislation that would put money directly in Americans’ health savings accounts, a strategy favored by President Donald Trump. Meanwhile, Representative Brian Fitzpatrick (R-PA), a House moderate, has proposed extending the Affordable Care Act tax credits, but with income limits and required minimum premium payments. His plan also includes new flexibility for health savings accounts.
In our meetings with lawmakers and continued intelligence gathering around Washington, it seems there is little hope that anything will be decided prior to the looming Dec.15 deadline for open enrollment. STS continues to monitor this quickly evolving situation as well as push for STS’s advocacy priorities.