President Donald Trump is planning to unveil a new proposal to address health care costs as soon as Monday, as his administration seeks to prevent a significant increase in premiums stemming from the expiration of key Affordable Care Act (ACA) subsidies, according to three sources familiar with the matter who spoke to CNN. The proposed plan seeks to fulfill Trump’s promise to deliver a superior alternative to the enhanced ACA subsidies, which currently help nearly 22 million Americans nationwide afford health coverage.
This initiative follows a deadlock in Congress, where Democrats rejected efforts to reopen the federal government for over a month, a clean extension of the subsidies without additional conditions or reforms. Senate Republicans have agreed to a mid-December vote on legislation to extend these enhanced subsidies, which are set to expire at the end of the year. In return, they have agreed to extend federal government funding through January, prompting the Trump administration and its aides to develop a competing proposal addressing the subsidy lapse.
The increased assistance was initially authorized in 2021 as part of the Biden administration’s COVID-19 relief package, designed to help millions of Americans afford health insurance during the pandemic. Without renewal, health insurance premiums are projected to more than double next year, according to the Kaiser Family Foundation (KFF), a nonpartisan health policy research organization.
Additionally, the Congressional Budget Office estimates that about 2 million more individuals could lose health coverage next year if subsidies expire. Democrats are preparing to use this projected fallout to weaken the GOP in the upcoming midterm elections, hoping to replicate their 2018 success when Democrats gained control of the House, partly due to efforts by Republicans to repeal the ACA the previous year. White House officials emphasized that the administration’s proposal is still in development, with details and timing subject to change. A White House spokesperson stated, “Until President Trump makes an announcement himself, any reports about the administration’s healthcare positions are mere speculation.”
Souces, CNN
