Sen. Lisa Murkowski (R-Alaska) said she supports extending enhanced subsidies to help people afford premiums on ObamaCare plans ahead of what’s expected to be an intense debate among congressional Republicans this year.
The enhanced subsidies were first put into effect during the height of the coronavirus pandemic as part of President Biden’s 2021 economic recovery law and then extended as part of the Inflation Reduction Act. The subsidies increase financial help to low-income individuals who qualify for plans with cheap, or even zero-dollar premiums.
“I think we’re going to need to continue these premium tax credits,” Murkowski said in an interview with the Alaska Beacon this week. “I think you’re going to have real pressure coming on this administration and the Congress to continue these credits.”
Murkowski said she understands Republicans — who now hold the majority in the House and Senate — will want to reflexively undo Biden’s actions because they “hated” the American Rescue Plan and “hate, hate, hate the Inflation Reduction Act.”
But she noted the credits have shielded people in Alaska and all over the country from the cost of rapidly rising health insurance premiums.
“I think it’s not just going to be the pressure that you’re going to hear from Alaskans that are saying, ‘Wow, this is not good.’ But I think [expiration of the credits] has the potential to move us backwards, in terms of the progress that we have made in improving access to health care and affordability,” Murkowski said in the interview.
Murkowski added that she doesn’t know whether a permanent extension or a temporary one is the best path forward.
“But I think we’re going to have to wrestle with this, and I think we’re going to be hearing a lot from our constituents on it,” Murkowski told the Alaska Beacon.
If the subsidies are allowed to expire this year, tens of millions of Americans likely will see a sudden increase in their health insurance costs. The Congressional Budget Office (CBO) said it expects enrollment in the health exchanges to drop sharply from an estimated 22.8 million in 2025 to 18.9 million in 2026.
Premiums would double, at least, for subsidized consumers in 12 states who enrolled using the federal exchange, according to data from KFF.
Extending the subsidies would be extremely expensive; according to the CBO, permanently extending the tax credits would increase the deficit by $335 billion over the next 10 years. But 3.4 million more people annually would have health insurance.
Republicans have balked at the price tag, and argue too many high earners are getting taxpayer-subsidized insurance.
The fate of the subsidies will likely be decided through the budget reconciliation process, when the Senate can bypass the filibuster to pass legislation that cuts spending.
