Yesterday, the House of Representatives joined the Senate in passing a stopgap measure to end the longest-ever federal government shutdown. While this agreement funds important programs like the Supplemental Nutrition Assistance Program (SNAP) and ensures federal workers get paid, it does not include an extension of the tax credits that reduce the cost of health insurance purchased through the Affordable Care Act (ACA) Marketplaces. The expiration of those tax credits, together with previous congressional action cutting Medicaid funding, were the issues at the heart of the shutdown.
The expiration of ACA tax credits, together with previous congressional action cutting Medicaid funding, were at the heart of the shutdown.
The Democratic caucus sought a continuation of the tax credits and Republicans were either content to see them expire or wanted to debate the issue separately from the budget negotiation process.
The Continuing Resolution Fixes Some Issues
Yesterday, Congress agreed on, and the president signed, a continuing resolution (CR) to fund the government through January 30, 2026.
The January deadline gives Congress time to work on appropriations bills to update funding for government agencies. It also includes extensions of Medicare telehealth and hospital-at-home authority. Spurred by recent turmoil in SNAP program continuity, the legislation specifically extends SNAP funding until September 30, 2026.
The legislation specifically extends SNAP funding until September 30, 2026.
But Harm to Millions Continues
Medicare Rights continues to urge Congress to extend the critical tax credits that help millions of people, including many who are nearing Medicare eligibility and family members of Medicare beneficiaries, to afford health coverage. In addition to the devastating health and financial impacts that being uninsured can have for an individual and their family, widespread un- and under-insurance threatens our healthcare system as a whole by increasing burdens on emergency rooms and other safety net providers. It also strains the insurance market by removing younger, healthier enrollees and risking “death spirals,” decreasing affordability for all—not just those who rely on tax subsidies—and increasing government costs for the narrower band of people who would retain some subsidy after the enhanced tax credit expires.
Further Reading
Read more about the genesis of the shutdown.
Read more about the need for Congress to extend critical tax credits to avoid loss of health coverage for millions.
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