Lawmakers near tentative agreement to revive expired tax credits with new eligibility limits and cost controls.
By yourNEWS Media Newsroom,
A bipartisan group of U.S. senators is nearing a deal to reinstate expired Obamacare subsidies, potentially paving the way for a significant healthcare vote as lawmakers seek to balance affordability with tighter restrictions on the program.
According to Politico, negotiations are being led by freshman Sen. Bernie Moreno, R-Ohio, who said Wednesday that draft legislative text could be released as early as next week.
The emerging proposal would restore enhanced Obamacare tax credits that expired on Jan. 1, extending them for two years while adding new guardrails designed to limit costs and narrow eligibility. Moreno indicated that a finalized draft could be ready “realistically, probably Monday.”
Under the framework under discussion, the subsidies would come with new conditions, including a minimum monthly premium payment and an income cap intended to prevent higher earners from qualifying. Lawmakers are weighing a cutoff for individuals earning more than roughly 700 percent of the federal poverty level, along with a minimum premium contribution of about $5 per month.
The plan would also introduce penalties for insurance companies accused of enrolling individuals in subsidized plans without their consent, a practice critics have labeled “phantom enrollment.” In addition, negotiators are considering provisions to expand access to health savings accounts and add new cost-sharing reduction measures.
Moreno said the proposal would give subsidy recipients an additional option during the second year of the extension, allowing them to have the value of their subsidies deposited into a prefunded health savings account.
Sen. Susan Collins, R-Maine, said she is “encouraged” by the progress of the talks. Two other individuals familiar with the negotiations told Politico that the bipartisan group, which includes roughly a dozen senators, is close to reaching consensus.
Despite the momentum, significant hurdles remain. It is unclear whether a finalized agreement would secure enough votes to pass the Senate or withstand scrutiny in the House.
One unresolved issue involves concerns that Obamacare subsidies could be used to help pay for insurance plans that cover abortion. Moreno said the developing framework would not alter existing abortion policy and stressed that negotiators are focused on complying with the Hyde Amendment, which prohibits federal funding for abortions.
“We’re trying to resolve how we ensure compliance with the spirit” of Hyde, Moreno said, describing abortion as a “peripheral” issue in the negotiations.
After the enhanced subsidies expired, Obamacare premiums increased and enrollment declined. Dr. Mehmet Oz, administrator of the Centers for Medicare & Medicaid Services, said last month that enrollment for 2026 dropped to 15.6 million, down from about 16 million the previous year.
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