Bold claim: Expiring ACA subsidies threaten higher premiums and more uninsured Americans, and the clock is ticking on a bipartisan fix.
Sen. Bill Cassidy of Louisiana urged Congress to pass legislation addressing the looming expiration of Affordable Care Act subsidies, stressing that effective policy should take priority over party credits. In an interview on NewsNation’s The Hill Sunday, Cassidy said, “Good policy is good politics. Let’s not have a Republican plan or a Democratic plan, let’s have an American plan. If we address it, I don’t care who gets the credit.”
As chair of the Senate Health, Education, Labor and Pensions Committee, Cassidy has co-sponsored a proposal to redirect subsidy funding into health savings accounts (HSAs) paired with bronze or catastrophic ACA marketplace plans. The goal is to make plans more affordable by pairing consumer savings with lower-cost coverage options. The measure did not advance in the Senate this week, mirroring another Democratic-backed effort to extend subsidies for three more years. The enhanced subsidies—originating during the COVID-19 pandemic and extended by the 2022 Inflation Reduction Act—are set to lapse at the end of the month.
Cassidy reaffirmed his support for the HSA-focused approach on Sunday while suggesting there could be a broader agreement (an “accommodation”) on the subsidies’ expiration. He indicated optimism about striking a deal before year’s end and emphasized the aim of addressing affordability for ACA enrollees, including both premiums and out-of-pocket costs.
Without a permanent extension, the Congressional Budget Office projects premium increases of about 4.3% in 2026, 7.7% in 2027, and an average rise of 7.9% annually from 2028 through 2034. The CBO also estimates that uninsured enrollment could rise by an average of 3.8 million between 2026 and 2034 if the subsidies lapse.
Cassidy, a medical doctor by training, reiterated his willingness to collaborate with Democratic colleagues to find common ground that reduces both premiums and out-of-pocket costs for ACA enrollees.
