WASHINGTON, D.C. — The White House is reviewing a draft proposal that would extend Affordable Care Act subsidies for two more years as millions of Americans brace for sharp increases in health care premiums when the current tax credits expire at year’s end. The plan, described to the Associated Press by individuals familiar with the discussions, signals that President Donald Trump may be open to continuing a key portion of the ACA while seeking a longer-term Republican health care framework.
The pandemic-era subsidies expanded eligibility up to 700% of the federal poverty level, temporarily suspending the ACA’s original 400% cutoff. Under the draft proposal, the broader eligibility window would continue, but all enrollees would be required to pay at least a minimum monthly premium. One option under consideration would require consumers to contribute 2% of their income or a minimum of $5 per month, ending zero-premium plans that Republicans argue have enabled fraud.
White House officials emphasized the plan is not final, with spokesperson Kush Desai calling all reporting “speculation” until Trump makes a formal announcement. Press secretary Karoline Leavitt said the president remains involved and focused on “bringing down costs for consumers.”
Some Democrats have expressed early openness to negotiations. Sen. Maggie Hassan said the proposal “represents a starting point,” noting that allowing subsidies to lapse would severely impact Americans already facing higher premiums as the 2025 enrollment period begins.
Health policy analysts warn that without congressional action, average subsidized enrollees could see premiums more than double next year, according to estimates from KFF.
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