


House Democratic leader Hakeem Jeffries advocated Thursday that his party should not agree to end the government shutdown without securing a permanent extension of Obamacare subsidies that were expanded during the pandemic and are set to expire this year.
“Of course, the American people should accept nothing less,” Mr. Jeffries said when asked if Democrats would accept anything short of a permanent extension.
The New York Democrat pointed out that Republicans this summer permanently extended and expanded their temporary 2017 tax cuts that were due to expire this year, providing “massive tax breaks to their billionaire donors” that was paid for in part with the largest-ever cut to federal Medicaid spending and reductions in food benefits.
“This was done permanently,” Mr. Jeffries said. “And now they want the American people – not us Democrats, the American people – to accept anything less than a permanent extension of tax credits that make their health care affordable?”
Mr. Jeffries said more than 20 million Americans face “dramatically increased health care premiums, copays and deductibles” if the enhanced subsidies are not extended.
The COVID-19 expansion opened the Obamacare subsidies, known as premium tax credits, to people earning above 400% of the federal poverty level and capped out-of-pocket premium costs at 8.5% of household income.
Democrats have proposed to permanently extend that enhancement, which they first enacted along party lines in their COVID relief bill, the American Rescue Plan in 2021, and temporarily extended in the Inflation Reduction Act.
The House Democratic leader’s comments about accepting “nothing less” than a permanent extension makes what was already a difficult ask even more so.
Republicans have been divided on whether to extend the enhanced subsidies at all, but those who want to do so have said the enhanced pandemic subsidies should not continue indefinitely. They also want changes to crack down on fraud and have said they won’t negotiate with Democrats on any extension until the government is reopened.
“Conservatives are very concerned about the subsidies,” House Speaker Mike Johnson said earlier Thursday.
The Louisiana Republican said the subsidies go directly to insurance companies that have driven premiums up, and the program needs “real reforms” to address fraud, waste and abuse.
“That’s not a simple issue,” Mr. Johnson said. “That’s going to take weeks to deliberate and discuss and debate.”
The speaker has repeatedly said Congress has until the end of the year to decide whether to renew the enhanced subsidies because they don’t expire until Dec. 31.
Democrats want to act now because insurers have already set premium rates – with notices of increases going out this month – and are unlikely to make adjustments after open enrollment begins Nov. 1.
Many Democrats admit they’re unlikely to get Republicans to agree to permanently codify the expanded subsidies and are ready to accept a shorter extension.
“I could settle for a couple years,” Sen. Ruben Gallego, Arizona Democrat, said Wednesday.
• Lindsey McPherson can be reached at lmcpherson@washingtontimes.com.