U.S. House Passes GOP Healthcare Bill Without ACA Subsidies

The U.S. House of Representatives on Wednesday passed a Republican-authored healthcare bill that does not extend the enhanced Affordable Care Act (ACA) premium tax credits set to expire at the end of the year.  The vote effectively allows the subsidies to lapse, barring further congressional action.

While the bill cleared the House, it is not expected to advance in the Senate and does little to resolve divisions within the Republican caucus over the future of the subsidies.  Moderate Republicans had pushed for a vote to extend the credits, warning of significant cost increases for consumers if they expire.  Some GOP members expressed frustration that leadership did not allow a vote on extending the subsidies.

The Republican bill aims to lower premiums for some while reducing overall subsidies and raising premiums for others, starting January 2027.  It does nothing to address 2026 premiums.  It would also expand access to association health plans, which allow small businesses, freelancers and self-employed individuals to pool resources and purchase group health insurance at potentially lower costs.

According to KFF, average premium payments could rise by $1,016 next year if the enhanced tax credits end on December 31.

House Republican leaders and moderates have indicated discussions may continue into 2026, but without a legislative fix this year, millions of Americans could face higher health insurance costs in the coming months.

In Connecticut, Governor Ned Lamont announced a plan last week to use emergency reserve funds to preserve subsidies for many Access Health CT enrollees.  The temporary fix will offset the anticipated premium spikes triggered by the expected subsidy lapse, effectively preserving financial support for certain exchange customers. 

Click here to learn more about Connecticut’s plan to continue temporary support.