Republicans are barreling toward an Obamacare subsidy cliff

The White House is not in a hurry to extend the subsidies before the shutdown ends.

Republicans are rushing to enroll in Obamacare without a plan to deal with the sticker shock millions of Americans will experience as a result of the expiration date of federal subsidies.

Lack of direction is coming from the top. President Donald Trump has not provided clear guidance to his own party about how he intends to handle the expiring subsidies, which could lead to dramatic price increases for enrollees.

Rep. Jeff Van Drew, R-N.J., said he talked to President Trump on the phone a few weeks ago about a one-year extension of enhanced subsidies. Van Drew claimed that Trump had asked him, “Can’t you do anything better?” Van Drew replied: “Mr. We don’t have time, Mr. President.

According to four Republicans who requested anonymity in order to discuss private discussions, Trump’s lackadaisical attitude towards extending subsidies and his interest for a major healthcare overhaul – as he mentioned in both a meeting with Democratic and Republican leaders – is complicating GOP leadership’s efforts to deal with expiring health insurance subsides that will affect 20 million Americans. Hill Republicans need Trump’s approval to move forward with Affordable Care Act subsidies. They are running out of time.

Most consumers will be able to start looking for ACA plans next year on Nov. 1. These plans will be significantly more expensive on the enrollment sites if legislation is not passed to extend enhanced subsidies beyond this calendar.

Karoline Leavitt, the press secretary for the White House, was non-committal about what the President would do in response to the possible spike. She demanded that Democrats vote first to reopen government.

Leavitt stated, “I will just point out that it is ironic for Democrats to hold the government and American citizens hostage because of a health-care system they created.” “Republicans always say it’s broken, yes. But [Democrats] created it. And now they want the government shut down to fix it.”

Some in the president’s circle share her view. Many do not believe that Trump should embark on a rescue operation to save the health law of former president Barack Obama.

I don’t believe the president is interested in saving Obama’s legacy legislation, which has been a failure for all involved and a constant headache,” said a source familiar with the thinking of the administration. The person spoke anonymously to discuss sensitive topics. I do see a scenario in which the president could see a path for a health policy bill that would receive bipartisan support.

According to the source, Trump’s loyal supporters are more likely to be in districts with lower incomes and a deep red color.

This isn’t [Rep.] Mike Lawler’s problem. Funny enough, this is a Marjorie Taylor Greene’s issue. The person added that they have the room to weather the storm, but cautioned: “But, if constituents suffer because of their less fortunate health care situation, then there must be a solution.”

Republicans on Capitol Hill and in the White House have no intention of changing their strategy. They are confident that Democrats won’t blink and will be blamed for funding failures. Republicans believe they are making progress with their message that Obamacare needs to be rescued because it has become too expensive and fails Americans.

An anonymous person from the White House who described the thinking of administration officials said that the GOP message would focus on the costs associated with Obamacare and blame Democrats for the sunsetting of subsidies in the Inflation Reduction Act, a law passed by Democrats on party-line lines.

The person stated, “Democrats need to be careful because they are going to get exposed, first, on how expensive Obamacare really is.” “And they’re the ones who put it in the Inflation Reduction Act where the subsidies expire,” the person said.

GOP leaders want to stay on pace with Trump and make sure he doesn’t cave in to Democrats demands for a negotiation to end the shutdown. After a phone call this week with Speaker Mike Johnson and Senate Majority Leader John Thune, the president reiterated their message that he will meet with Democratic leaders only after they have reopened the government.

Republicans and White House officials continue to hold behind-the scenes discussions on a possible extension of subsidies with conservative reforms coupled with other health policies. This would require bipartisan support in Congress.

Some argue that while congressional Republicans don’t feel pressure from Trump yet, they aren’t also feeling pressure from their constituents in the home about expiring subsidies.

A senior GOP staffer, who spoke candidly and was allowed to remain anonymous, said: “Right Now my impression is that the majority of Republicans are feeling very little political tension on the enhanced subsidies issue.” “Our phones are mostly silent, which is a sign that Democrats’ claims aren’t convincing.”

Republicans, however, are hearing from their constituents and they are becoming agitated about a deal to extend the ACA with new restrictions.

Van Drew stated that if it is not too late to find a solution, “it’s pretty close” in regards to finding a way without causing disruptions for the ACA open enrollment which starts on Nov. 1. Van Drew told reporters that he had urged the president to extend tax credits by a year in order to buy more time to find a better solution.

He said, “For one whole year, let’s work really hard and come up something innovative.” Van Drew reported that the president had told him he was aware of his concerns and would investigate it.

Several Republicans privately discuss the need for Congress or Trump to act in order to extend the open enrollment window — particularly to protect their most vulnerable Republicans who are up for re-election.

Johnson did not rule that out in a short interview on Wednesday. He simply said he wouldn’t predict any outcome at this time.

He did not mention that it was on the radar of Republicans.

Johnson continued, “If we are able to reopen the government we will have many thoughtful discussions on this and other issues.”

Some Republicans in contact with insurance companies say that insurers may adjust premiums to reflect a deal made after November 1.

“I don’t think it’s to late.” Rep. Mike Haridopolos, R-Fla., told reporters that the beauty of modern technology is that you can adjust it. “These insurance companies are sophisticated and will be able run off these numbers very quickly,” Haridopolos said.

Source: https://www.politico.com/news/2025/10/24/republicans-obamacare-subsidy-cliff-plan-trump-00620873

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