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Health costs to soar for millions unless Congress acts

Los Angeles Times

|

September 14, 2025

There's bipartisan support in Congress for extending tax credits that have made health insurance more affordable for millions of people since the COVID-19 pandemic. But the credits are in danger of expiring as Republicans and Democrats clash over how to do it.

- BY MARY CLARE JALONICK AND AMANDA SEITZ

Health costs to soar for millions unless Congress acts

SENATE Majority Leader John Thune (R-S.D.) has ruled out quick action on health insurance subsidies.

Democrats are threatening to vote to shut down the government at the end of the month if Republicans don’t extend the subsidies, which were put in place in 2021 and extended a year later when Democrats controlled Congress and the White House. The tax credits, which are due to expire at the end of the year, go to low-and middle-income people who purchase health insurance through the Affordable Care Act.

Some Republicans who have opposed the healthcare law, known as Obamacare, since it was enacted in 2010 are suddenly open to keeping the tax credits. They acknowledge that many of their constituents could see steep hikes in coverage if the subsidies are allowed to lapse.

But the two sides are far apart. Republicans are divided, with many firmly opposed. GOP leaders in the House and Senate have been open but noncommittal on the extension, and many of those Republicans who say they support it argue that the tax credits should be reworked — potentially opening up a new healthcare debate that could take months to resolve.

Democrats would be unlikely to agree to any changes in the subsidies, increasing the chances of a standoff and mounting uncertainty for health insurers, hospitals, state governments and the people who receive them.

“In just a few weeks, unless Congress acts, millions of Americans will start getting letters in the mail telling them their health insurance costs are about to go through the roof — hundreds of dollars, thousands in some cases,” Senate Democratic leader Chuck Schumer (D-N.Y.) said this month.

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