It remains unclear if the legislation will be enough to bridge a growing divide over how to handle the expiring subsidies.
A quartet of bipartisan House members has unveiled a two-year extension of enhanced Obamacare subsidies set to expire at the end of this year, but with changes to assuage GOP concerns of fraud.
The legislation encompasses a set of principles previously unveiled by Republican Reps. Don Bacon of Nebraska and Jeff Hurd of Colorado and Democratic Reps. Tom Suozzi of New York and Josh Gottheimer of New Jersey.
It aims to break a stalemate that has erupted between both parties over handling of the expiring subsidies. Many Republicans have called for the tax credits to be converted into a direct payment to consumers while Democrats are still insisting on a straight extension.
“It’s time to come together, Democrats and Republicans, put aside the partisan BS, and deliver a real solution that will cut health insurance premiums,” Gottheimer said in a statement.
The bill would extend the subsidies through 2027, but would restrict eligibility to those earning less than $200,000 per year for a family of four.
It would aim to crack down on “ghost beneficiaries,” a common GOP critique relating to the high number of Obamacare enrollees who do not use any healthcare claims that Republicans say is an indicator of fraud.
It also would codify the federal government’s authority to remove bad actors from the Affordable Care Act marketplace and require insurance marketplaces to regularly confirm the eligibility of enrollees for subsidies.
While some Democrats have been in favor of exploring changes to the current system as part of a subsidy extension, it remains unclear if the rest of the GOP will be on board. President Donald Trump has blasted an extension and called for the subsidies to be converted into a direct payment.
Sen. Bill Cassidy (R-La.) has floated a proposal to do that by creating a health savings account funded by the enhanced subsidy. It has been panned as “problematic” by Democratic leaders.