With the clock ticking on the expiration of enhanced Affordable Care Act premium subsidies, the Trump administration was expected to announce its own proposal called the Healthcare Price Cuts Act: However, the administration’s proposal has been postponed according to CNN.
“Until President Trump makes an announcement himself, any reporting about the administration’s health care positions is mere speculation,” a White House spokesperson told Politico. Nevertheless, several news outlets have reported on what their sources say is likely to be included in the plan:
- The planned eligibility cap would limit subsidies to individuals with income up to 700% of the federal poverty line.
- Enrollees would pay a minimum premium payment.
- Enrollees who switch to lower-premium Marketplace plans could direct the difference in premium costs into tax-advantaged savings accounts funded with their subsidy dollars.
- The White House would ask Congress to appropriate funding for cost-sharing reductions, which lower out-of-pocket expenses for ACA enrollees.
Members of both parties have made proposals to continue to reform the enhanced subsidies. The White House framework shares common elements with a bipartisan proposal supported by several moderate Republican and Democratic lawmakers. A plan released by Reps. Don Bacon (R-Neb.), Jeff Hurd (R-Colo.), Tom Suozzi (D-N.Y.) and Josh Gottheimer (D-N.J.) would extend enhanced subsidies for two years and start phasing out assistance for families of four earning more than 600% of the federal poverty level, or $200,000, annually.
Enrollees must sign up before December 15 to obtain coverage that starts January 1, and open enrollment ends on January 15. During the recent government shutdown, Senate Republicans agreed to hold a mid-December vote on extending the enhanced subsidies, which are set to lapse at year’s end, in exchange for extending government funding through January.
Enhanced subsidies Top of Formexpanded Marketplace eligibility to households with income of more 400% of the federal poverty limit and capped premiums at 8.5% of income. Since their introduction, ACA enrollment has more than doubled, from 11.4 million in 2020 to 24.3 million in 2025. If the enhanced subsidies expire, premiums are expected to more than double next year More than three-quarters of adults support keeping the tax credits, according to recent polling.
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