WASHINGTON — In an about-face, the White House is weighing a proposal to extend the Affordable Care Act enhanced subsidies that Democrats have been clamoring for since last year.
ACA health insurance enrollees face a spike in premium payments if Congress does not extend the extra tax credits, which Democrats enacted during the Covid-19 pandemic. The credits are set to expire at the end of this year.
President Trump is considering a proposal that would extend the premium tax credits for two years, with certain restrictions. The plan would cap eligibility at incomes of 700% of the federal poverty level. There is currently no income cap, though households are required to spend up to as much as 8.5% of their income on health insurance before subsidies kick in. Also, the plan would end zero-dollar premiums, possibly setting a $5 minimum monthly cost in lower-tier plans.
