With Senate saying no to extending health subsidies, what happens now?
AI-generated summary reviewed by our newsroom.
- Covered California urges shoppers to compare tiers; switching can cut premiums up to 39%.
- Senate rejected a three-year subsidy extension; House petitions may push vote to 2026.
- Covered California warns ACA marketplace premiums will rise about 97% in 2025.
Health insurance premiums for Obamacare-inspired policies are about to double for Californians, as hope Congress will come to the rescue got a big setback Thursday
Covid-era credits for people with Affordable Care Act marketplace health care policies will expire at the end of this month. That’s likely to mean an increase averaging about 97% for Californians who keep their current policies next year.
“I hear from consumers they are shocked by higher prices. Many are scared and stressed about what to do,” Jessica Altman, executive director of Covered California, which manages the marketplace system, told reporters. “I don’t have good answers for them.”
Thursday, the Senate soundly rejected a Democratic plan to continue the credits for three years.
“What happens next is that people’s insurance payments go through the roof,” Sen. Adam Schiff, D-Calif., told The Sacramento Bee.
In the House, GOP leaders have been reluctant to back a similar extension, though they were not ruling out a new plan next week. A coalition of Democrats and more moderate Republicans, including Reps. David Valadao, R-Hanford, and Kevin Kiley, R-Roseville, have launched bids to extend the subsidies.
How consumers can ease the pain
Covered California is advising consumers concerned about the increase they can shop and make changes to their plan before December 31.
“Our research shows that by using our Shop and Compare Tool and stepping down to a lower tier, households renewing their Platinum plans can find another plan through their current insurer with 23% lower premiums per month,” said Jagdip Dhillon, Covered California spokesman.
The ACA marketplace offers platinum-, gold-, silver- and bronze-level policies. Platinum coverage is more expensive, but deductibles are less. Other plans have lower premiums but require more out-of-pocket expenses.
“Those in gold plans can sign up with their same insurer with 23% percent lower premiums per month,” Dhillon said. “People with silver 70 and 73 plans can find a new plan through their current insurer with 39% lower premiums per month.”
If people keep their current plans, though, on average their premiums will jump an estimated 97%.
Can Democrats and GOP work together?
In the House, a bipartisan coalition is circulating a “discharge petition,” a way of forcing a plan pushed by Rep. Brian Fitzpatrick, R-Pa., for a two-year extension to a vote. Another petition seeking a one-year extension is being circulated by members of both parties.
They need 218 signatures. Democrats have 213 House members. The hope of the Republicans involved is that GOP leaders will figure out a way to get some form of the credits through the chamber next week.
Even if successful, it’s unclear if these efforts will make it through the Senate.
“I really don’t really think we can address this as long as they’re running everything,” Schiff said of Republicans. “They’ve always been hostile to the Affordable Care Act. They want to kill it in pieces.”
Sen. Alex Padilla, D-Calif., said he thought “bipartisanship is still possible,” citing the Thursday vote on a Democratic-authored three-year extension. While it fell nine votes short of the 60 needed to be considered, the proposal did get the support of four Republicans.
A Republican alternative also went nowhere, receiving 51 votes, all Republicans, also leaving it nine short.
A fierce debate
The debate illustrated the partisan bitterness over the credits.
“Don’t let health coverage lapse for millions of Americans. This isn’t a game. We’re three weeks away from the catastrophic spike of cost in health insurance for so many,” said Padilla in a floor speech. “The fact of the matter is our Republican colleagues don’t have a serious plan.”
Yes we do, countered Senate Majority Whip John Barrasso, R-Wyoming. Barrasso, a physician, said the Democrats simply want to continue a faulty health care system.
“They want to send taxpayer dollars directly from the federal treasury to insurance companies to prop up Obamacare,” he told Senate colleagues. “Obamacare has failed. It has failed so badly that Democrats continue to use taxpayer dollars to hide its failures.”
The GOP plan would provide funds usable for deposits into Health Savings Accounts for consumers who now buy bronze level plans on the Affordable Care Act marketplace, which tend to be less expensive but have higher deductibles, or marketplace catastrophic coverage.
Eligible would be people who earn less than 700% of poverty level, or $225,050 for a family of four. People 18 to 49 could have $1,000 deposited in their account, and those 50 and over could receive $1,500.
“Republicans want to put MORE money in your pocket so your family can afford health care. Democrats want to give money to large insurance companies to increase their profits. Is this really a debate?” tweeted Sen. Bill Cassidy, R-La., one of the plan’s chief architects.
This story was originally published December 11, 2025 at 2:02 PM with the headline "With Senate saying no to extending health subsidies, what happens now?."
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