By Jarrett Renshaw
(Reuters) -The White House is preparing a health-policy framework that would extend Affordable Care Act insurance premium subsidies for two years, Politico reported on Monday, a move that could put President Donald Trump at odds with some of his fellow Republicans.
Millions of enrollees in ACA health insurance programs —Â 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, Trump’s plan is also expected to add new eligibility limits.
Americans shopping for 2026 ACA health insurance plans face 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 midterm election year with Democrats hammering on the healthcare issue and Republicans seeking to preserve their narrow control of Congress.
A White House official told Reuters that there would be no health announcement on Monday.
White House press secretary Karoline Leavitt told reporters that healthcare is a frequent topic of discussion in the administration.
“Right now, the president is very much involved in these talks, and he’s very focused. We’ll fix the system, and we’ll bring down costs for consumers. As for the details of those discussions, I’ll let the president speak for himself,” Leavitt said.
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.
U.S. Representative Tim Burchett, a Tennessee conservative, credited Trump with at least trying to find a solution to higher healthcare costs.
“At least Trump’s proposal does something. Over a two-year period, it keeps people from losing their insurance, and it verifies that it’s not a bunch of frauds going on,” he said in a video containing his thoughts on the plan.
Representatives Richard Neal, Frank Pallone and Bobby Scott — top Democrats on the Ways and Means, Energy and Commerce and Education and Workforce committees — called the White House’s healthcare plan “nothing more than the greatest hits of Republican health care ideas the people have rejected for years — hiking costs on families, pushing skimpier coverage, penalizing people who get sick, and expanding tax shelters for the wealthy.”
The lawmakers added in a joint statement that: “At this point, anything short of a clean extension is unworkable and won’t avoid the price hikes people are now facing.”
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; additional reporting by Steve Holland, David Morgan and Nolan D. McCaskill; Editing by Kevin Liffey, Chizu Nomiyama, Cynthia Osterman and David Gregorio)
