Dueling Democrat, Republican ACA subsidy plans fail in Senate

Dueling partisan proposals to address the expiry of the Affordable Care Act subsidies both failed to advance in the Senate on Thursday.

Democrats secured during the recent shutdown a promised vote on a "clean" extension of the tax credits that ultimately failed 51-48. Several Republicans, including Sens. Susan Collins, R-Maine, and Lisa Murkowski, R-Alaska, voted with Democrats on the extension that still fell short of the required 60 votes.

The proposal, released late last week, would have extended the premium tax credits for three years as-is. Democrats argued that this would provide immediate relief to individuals who were set to see massive premium spikes on Jan. 1, while allowing legislators time to pursue future reform.

"There’s a crisis, a huge crisis that will hit us Jan. 1," Senate Minority Leader Chuck Schumer, D-New York, told MS NOW's "Morning Joe" on Thursday morning, per NBC News.

An alternative proposal brought forth at the beginning of this week from leading Republican Sens. Bill Cassidy, M.D., R-Louisiana, and Mike Crapo, R-Idaho, also failed by a 51-48 vote on Thursday. 

Under their plan, rather than an extension for the subsidies, individuals purchasing bronze-level or catastrophic plans on the exchanges would be eligible for a health savings account. The Centers for Medicare & Medicaid Services would provide $1,000 each year for younger individuals and $1,500 for older enrollees into those accounts.

There were no Democrats voting in support of the bill, and Sen. Rand Paul, M.D., R-Kentucky, was the only Republican who voted against the proposal.

Leaning on health savings accounts appears to be the favored approach from the White House, which has shifted its stance on the issue several times. The Trump administration was set to reveal its own healthcare plan, but the announcement was scuttled amid intra-party pushback, as it reportedly would have extended the subsidies in some form.

Meanwhile, open enrollment is ongoing, and individuals who want to secure coverage that kicks in on Jan. 1 must sign up on Healthcare.gov or a state-based exchange by Dec. 15.