By Jarrett Renshaw
(Reuters) -The White House is preparing to unveil a health-policy framework that would extend Affordable Care Act insurance premium subsidies for two years, Politico reported on Monday.
Millions of enrollees in ACA health insurance programs — also known as Obamacare — face sharp premium increases with the subsidies due to expire on December 31.
Democrats’ demand for an extension of the subsidies was the core issue in Congress that led to the federal government shutdown that ended earlier this month.
The attention on healthcare costs has highlighted voter concerns about the cost of living broadly, a key factor in recent Democratic election victories.
According to Politico, President Donald Trump’s plan is also expected to add new eligibility limits.
Americans shopping for 2026 ACA health insurance plans are facing monthly premiums that are more than double on average, and they are likely to postpone signing up in hopes of a last-minute reprieve or walk away, health experts say.
The issue has forced Trump into a political balancing act: trying to satisfy conservatives who oppose extending the credits while addressing voter concerns over rising insurance costs heading into a mid-term election year.
A White House official told Reuters that there would be no health announcement on Monday.
Shares of U.S. health insurers including Centene, Oscar Health, Molina Healthcare and UnitedHealth rose in premarket trading on Monday after reports of a possible two-year extension of ACA subsidies, a development seen as supportive for those selling plans on the marketplace.
Republicans remain divided over how to handle the December deadline.
Hardline conservatives want to let the subsidies lapse, moderates are pressing for an extension and some lawmakers are pushing for a broader overhaul to replace the credits. As part of a deal to reopen the government earlier this month, Senate Republicans agreed to give Democrats a vote on the credits in December.
The White House plan is expected to include a new income cap for receiving ACA tax credits and a requirement for minimum monthly premium payments, Politico reported.
One option under discussion would limit subsidies to individuals earning up to 700% of the federal poverty level, aligning with ideas floated by a bipartisan group of senators, Politico reported.
(Reporting By Jarrett Renshaw; Editing by Kevin Liffey, Chizu Nomiyama and Cynthia Osterman)
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