A bipartisan group of House lawmakers has released a set of principles aimed at lowering health care costs and temporarily extending enhanced premium tax credits (APTCs) under the Affordable Care Act (ACA). The plan calls for a short-term renewal of the subsidies, paired with reforms and new safeguards to prevent fraud and improper payments.
The statement comes amid the federal government shutdown with ACA credits at the center of the debate.
Reps. Tom Suozzi (D-N.Y.), Josh Gottheimer (D-N.J.), Don Bacon (R-Neb.), and Jeff Hurd (R-Colo.) are proposing a two-year extension of the enhanced APTCs, which are set to expire at the end of this year without congressional action. The proposal would phase out eligibility for the expanded subsidies for households with annual incomes between $200,000 and $400,000.
The lawmakers also call for stricter oversight of subsidy distribution. Their proposal would require ACA marketplaces to verify eligibility using the Social Security Administration’s Death Master File to prevent payments to “ghost beneficiaries.” It also encourages both parties to devise solutions to address fraud by brokers and agents who improperly enroll individuals in ACA plans. In addition, the plan urges marketplaces to better inform consumers about the value of the enhanced tax credits they receive.
The bipartisan group described the proposal as “a fair, reasonable path forward” even though the members do not agree on every policy detail.
“Congress is gridlocked, and too many Americans have lost faith that we can work together,” the lawmakers said. “But here’s the truth: Democrats and Republicans can sit down, listen to one another, and find common ground, especially when it comes to lowering health care costs.”
Enhanced premium tax credits were first expanded under the 2021 American Rescue Plan Act, which increased subsidy amounts and allowed households earning more than 400% of the federal poverty level to qualify, capping premiums for a benchmark plan at 8.5% of income. These expanded subsidies were later extended under the Inflation Reduction Act. Since their introduction, ACA marketplace enrollment has more than doubled—from 11.4 million in 2020 to 24.3 million in 2025, according to KFF.
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