Negotiations to extend the ACA enhanced tax credits that expired at the end of 2025 have collapsed, likely ending hopes of a revival, The Wall Street Journal reported Feb. 5.
A bipartisan group of senators were discussing a plan to extend the subsidies for two years. Plans would have also included new restrictions, such as an income limit, as well an expanded use of health savings accounts that would take effect in the second year.
Sen. Bernie Moreno, R-Ohio, one of the lead negotiators working on the proposal said that talks are “effectively over.” Mr. Moreno’s comments come about a week after he said his party was preparing to make its “best and final offer” to extend the subsidies.
Some Democrats involved in the negotiations said the talks stalled over disagreements on how to handle abortion coverage, according to the report.
ACA marketplace plans can cover abortion services, but federal law prohibits the use of federal funds for abortion except in cases of rape or incest, or when a mother’s life is at risk, according to the report. While subsidies can be applied toward plans that include abortion coverage, enrollees must pay a separate out-of-pocket amount for that portion of the premium to ensure federal dollars are not used for abortion services. Antiabortion activists argue the subsidies still indirectly support abortion coverage.
Sen. Tim Kaine, D-Va., said his party approached Mr. Moreno about removing the prohibition on using federal dollars to fund abortions put into the provision creating health savings accounts, according to the report.
Mr. Moreno said “Republicans will never support anything that allows federal tax dollars to be used for subsidizing abortions, period,” according to the report.
