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Senate rejects health care plans as ACA tax credits near expiration

The Senate blocked an extension of ACA tax credits, set to expire Jan. 1, potentially raising premiums for millions of Americans.
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As millions of Americans face a hefty reduction in tax credits, while others encounter steeper health insurance premiums, the Senate rejected a pair of proposals Thursday aimed at lowering health care costs.

Both votes needed 60 votes to advance; however, neither party gave in.

In the first vote, Senators rejected a proposal from Republican Sens. Bill Cassidy and Mike Crapo that would send money directly to patients rather than insurance companies and lower insurance premiums and health care costs. It also sought to expand Health Savings Account (HSA) eligibility, which is intended to help Americans cover out-of-pocket costs.

This legislation, however, would have allowed Affordable Care Act tax subsidies to expire at the end of the year.

The vote had just 51 votes in favor, when it needed 60 to pass. Sen. Rand Paul joined all 47 Democrats in opposing the legislation.

The Senate then rejected legislation that would have extended Affordable Care Act tax credits for millions of Americans. The subsidies expire Jan. 1, meaning many people who buy health insurance on ACA marketplaces could face steep cost increases at the start of the year.

Republican Sens. Susan Collins, Josh Hawley, Lisa Murkowski and Dan Sullivan joined Democrats in supporting an extension. This bill, however, would have needed 13 Republicans to break ranks in order for it to pass.

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Part of the Republicans' proposal that drew criticism from Democratic lawmakers is that it calls for ending taxpayer-funded abortion or transgender services. The Republican plan also calls for reducing Medicaid funding to states that provide health insurance coverage to migrants who are in the country illegally and requires states to verify citizenship or immigration status before providing Medicaid coverage.

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Up to this point, the lack of Republican consensus on health care has lingered, posing a political challenge as the 2026 midterm elections approach and swing district Republicans brace for possible political fallout if those ACA tax subsidies expire.