Biden’s New Plan For Obamacare
President Joe Biden recently urged Congress to extend the Affordable Care Act (ACA) subsidies, which are set to expire in 2025. He made the call after a Congressional Budget Office (CBO) report highlighted ongoing issues in the nation’s healthcare system, particularly the disparity in coverage and rising premiums. In a statement, Biden emphasized the critical role these subsidies play in making healthcare more affordable for millions of Americans.
Biden argued that the expanded tax credits, which lower premiums for many people, are vital in keeping healthcare within reach for working families. “Millions of Americans are benefiting from expanded premium tax credits that lower their premiums,” he said. He warned that if Congress does not renew these credits, premiums could skyrocket, and 3.8 million Americans could lose their insurance. Biden framed healthcare as a fundamental right, not a privilege, and called on lawmakers to continue this financial assistance for low- and middle-income families.
These subsidies, part of the ACA passed in 2010, are scheduled to phase out in 2025 unless Congress acts to extend them. With Republicans poised to hold a majority in the upcoming Congress, it’s unclear whether the GOP will prioritize renewing the ACA subsidies or push for reforms that address the flaws in the current healthcare system. Many Republicans argue that while the ACA was well-intentioned, it has led to rising premiums and limited choices for consumers.
The CBO report warned that failure to extend the subsidies could lead to a significant increase in the number of uninsured individuals and higher premium costs for those who remain in the market. If Congress lets the subsidies expire, average premiums for plans purchased through the ACA marketplace could rise by as much as 7.9 percent annually for the next eight years, according to the report. This adds more fuel to the ongoing debate about how to best fix America’s healthcare system while ensuring it’s affordable and accessible to all Americans.
