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North America
The Affordable Care Act subsidies are facing significant challenges for renewal as Democrats seek bipartisan support from Republicans. With the expiration deadline approaching at the end of the year, millions of Americans may face increased premiums. On Monday, Sen. John Cornyn (R-TX) said: “We start from the premise that Obamacare is a disaster and unaffordable,” highlighting skepticism among some Republicans. A deal struck by eight Senate Democrats with Republicans does not guarantee an extension, leading to a decline in health insurance stocks. The estimated cost to extend the subsidies through 2026 is $23.4bn. As negotiations continue, Sen. Bill Cassidy (R-LA) has proposed an alternative plan to replace the enhanced tax credits with flexible spending accounts for enrollees, which may not gain Democratic support.
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