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By Dan Gooding and Gabe Whisnant
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Alaska Republicans Lisa Murkowski and Dan Sullivan, along with Susan Collins of Maine and Josh Hawley of Missouri, were the lone GOP senators to vote for the rejected Democratic legislation that would have extended Affordable Care Act tax credits, essentially guaranteeing that millions of Americans will see a steep rise in costs at the beginning of the year.
Senators rejected a Democratic bill to extend the subsidies for three years and a Republican plan to create new health savings accounts, bringing an unceremonious end to Democrats’ months-long push to prevent the COVID-19-era subsidies from expiring on January 1.
Newsweek reached out to the offices of all four Republican Senators for comment via email on Thursday afternoon.
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Why It Matters
Healthcare subsidies became a defining issue of the recent federal government shutdown, with Democrats holding out on approving funding over the looming expiration of Affordable Care Act subsidies. Republicans, including President Donald Trump, have promised that they don't want Americans to pay more for healthcare, but a long-term plan is still unclear.
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What To Know
Republicans have argued that Affordable Care Act plans are too expensive and need to be overhauled. The health savings accounts in the GOP bill would give money directly to consumers instead of to insurance companies, an idea that has been echoed by President Donald Trump.
Senate Majority Leader, South Dakota Republican John Thune, said ahead of the vote that a simple extension of the subsidies is “an attempt to disguise the real impact of Obamacare's spiraling health care costs.”
The dueling Senate votes are the latest political messaging exercise in a Congress that has operated almost entirely on partisan terms, as Republicans pushed through a massive tax and spending cuts bill this summer using budget maneuvers that eliminated the need for Democratic votes. In September, Republicans tweaked Senate rules to push past a Democratic blockade of all of Trump’s nominees.
The Senate voted 51-48 not to move forward on the Democratic bill, with the four Republicans—Collins, Hawley, Murkowski, and Sullivan—voting with Democrats. The legislation needed 60 votes to proceed, as did the Republican bill, which was also blocked on a 51-48 vote.
Some Republicans have pushed their colleagues to extend the credits, including North Carolina Senator Thom Tillis, who said they should vote for a short-term extension so they can find agreement on the issue next year.
But there appeared to be little interest in compromise. Despite the potential for bipartisan agreement, Republicans and Democrats have never engaged in meaningful or high-level negotiations on a solution, even after a small group of centrist Democrats struck a deal with Republicans last month to end the 43-day government shutdown in exchange for a vote on extending the ACA subsidies. Most Democratic lawmakers opposed the move as many Republicans made clear that they wanted the tax credits to expire.
What People Are Saying
White House Press Secretary Karoline Leavitt, speaking Thursday afternoon: "The president is prepared to take action on healthcare, and he wants Republicans on the Hill to do the same. As you have seen, Senate Republicans put forward their own legislation earlier this week.
"As for the subsidies that are set to expire, I would like to remind you and everybody at home why this is on the brink of happening: Democrats wrote Obamacare. They passed it without a single Republican vote and then they ballooned it with these expensive COVID subsidies that completely distorted the health insurance market, then they doubled down, extending those subsidies and setting their own expiration date right now in 2025, which the administration is obviously aware of."
Senate Minority Leader, Democrat Chuck Schumer, on X ahead of the vote: "Instead of lowering premiums, Republicans chose instead to rip away healthcare funding, kick millions off insurance, and close rural hospitals. Why? So they could give their billionaire buddies a tax break."
Arizona Democratic Senator Mark Kelly, in a statement shared with Newsweek: “Today’s vote came down to a simple choice: protect working families from skyrocketing health care costs or let premiums double or even triple. Unfortunately, just as they have done for months, Republicans chose higher prices for Americans. The only way to fix this is by working together, and I’m ready to sit down with anyone to find solutions so that Arizonans can afford the health care they need.”
What's Next
Republicans have floated their own ideas for a fix, with Thune announcing earlier this week that the GOP conference would vote on a bill led by Louisiana Senator Bill Cassidy and Idaho Senator Mike Crapo.
In the House, Speaker Mike Johnson promised a vote next week on next steps. Moderates want subsidies extended, while the more conservative members want the ACA overhauled.
This article contains reporting by The Associated Press.
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