The rotunda of the U.S. Capitol in Washington. Photo: Diego M. Radzinschi/ALM
Members of the U.S. House voted 230-196 Thursday to pass an Affordable Care Act health insurance premium subsidy bill over the opposition of House Republican leaders.
The bill would keep the temporary high level of premium subsidies that was in effect in 2025 in place for three more years.
Seventeen Republicans ended up voting for final passage of the bill and helping Democrats send it to the Senate for further consideration.
All Democrats who participated voted for the bill.
The bill would need support from a two-thirds majority in the Senate to get through the Senate under normal Senate procedural rules.
What it means: The relatively high level of Republican support for the subsidy bill in the House may mean that Congress could pass some kind of ACA subsidy legislation.
For financial advisors and life and annuity professionals, one question is whether bipartisan interest in the topic could lead for opportunities for members of Congress to advance other types of legislation, such as proposals related to annuities, employer-sponsored retirement plans or health savings accounts.
The backdrop: The Affordable Care Act once limited access to ACA premium subsidies to people with income under 400% of the federal poverty level who bought individual or family health coverage through HealthCare.gov or another ACA public exchange.
Congress increased levels temporarily in response to the COVID-19 pandemic, and it made subsidies available to people at any income level if the full cost of standard coverage would exceed about 9% of their income.
The subsidy boost was set to expire at the end of 2025, creating what critics have called a "subsidy cliff."
The increases in projected out-of-pocket costs have been especially high for people with income over 400% of the federal poverty level.
Sen. Lisa Murkowski, R-Alaska, reported at a Senate hearing in December that a friend's health coverage costs were set to increase to $3,000 per month in 2026, from about $500 per month.
Gaining steam: The bill that passed in the House Thursday has gained momentum over the past month.
In December, bill supporters persuaded four Republicans to help make a House vote on the bill possible by signing a "discharge petition." The petition called for the House to bring House Resolution 780, a resolution supporting floor consideration of the bill, to the House floor. Supporters then persuaded nine Republicans to vote Wednesday for passage of a discharge motion.
Eleven Republicans voted for House Resolution 780.
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