Trump to unveil proposal to address Obamacare subsidies
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WASHINGTON ‒ President Donald Trump is expected to propose a policy framework to address health care costs that includes extending subsidies in the Affordable Care Act set to expire at the end of December, according to multiple media reports.
MS NOW and Politico reported an announcement could come as early as Monday, Nov. 24. The proposal, which would require approval from Congress, includes a two-year extension of the expiring Affordable Care Act (often called Obamacare) subsidies and new eligibility limits to enroll in Obamacare, according to Politico.
The expected announcement comes as Obamacare premiums are on track to skyrocket at the end of the year if the subsidies are not extended, putting Republicans in Congress in a dilemma to avert a major political liability ahead of the 2026 midterm elections.
The White House would not comment on the reports.
White House Deputy Chief of Staff James Blair last week said the Trump administration plans to put forward a health care bill. “We’re going to have the health care conversation. We’re going to put some legislation forward,” Blair said at a Nov. 18 Bloomberg Government policy breakfast.
Trump has repeatedly talked about overhauling the Affordable Care Act, the signature law of former President Barack Obama, and floated the idea of sending federal dollars directly to consumers rather than health insurance companies.
As part of the recently approved deal to end the 43-day government shutdown, Senate Republicans agreed to hold a vote on the expiring subsidies in December. Democrats had previously demanded extending the subsidies be included in any deal to reopen the government but retreated in exchange for a vote.
Republican lawmakers have been split on how to address the subsidies, with some hardline conservatives arguing to let them expire and moderates backing an extension.
About 22 million Americans who get Obamacare tax credits will see their monthly premium payments more than double on average if the subsidies are not extended, according to KFF, meaning consumers would pay an average of $1,016 more in 2026.
Politico reported Trump’s proposed eligibility restrictions would include capping eligibility at 700% above the federal poverty line. In addition, the White House plan calls to appropriate funds to reduce out-of-pocket costs for ACA plans and to allow enrollees who move down to a lower-premium health plan to place their tax credit in a tax-advantaged savings account, according to Politico.
Reach Joey Garrison on X @joeygarrison.
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