Senate rejects extension of Obamacare subsidies, expected to expire at the end of the year

The Senate rejected the extension of the health care subsidies of the Affordable Care Act (Obamacare), so they are expected to expire at the end of the year. The vote ended with 51 votes in favor and 48 against, far short of the 60 votes needed to pass. Four Republicans joined all Democrats - Josh Hawley (R-MO), Lisa Murkowski (R-AK), Susan Collins (R-ME) and Dan Sullivan (R-AK). Both Collins and Sullivan will seek re-election in 2026.

These subsidies were key, first in the shutdown and then in the opening of the government, with Republicans finally committing to call a vote on the matter. Some Democrats had already shown their discontent then, arguing that it was virtually impossible to reach 60 votes in favor.

"Senate Republicans just shoved the American people off the side of a cliff with no parachute and with an anchor tied to their feet. Republicans now own America’s health care crisis," Chuck Schumer, the Democratic minority leader in the upper chamber, declared after the vote.

"I want everyone here to understand just what happened on the senate floor. Senate Republicans just shoved the American people off the side of a cliff with no parachute and with an anchor tied to their feet. Republicans just blocked the Democrats' bill for a clean, simple extension of the ACA tax credits. The last chance they had to ensure people's premiums do not skyrocket in the coming months. Democrats did the work, but now Republicans chose the consequences," he added.

Despite initially being approved by President Barack Obama's flagship legislation, these subsidies were extended under the American Bailout Plan and the Inflation Reduction Act, both legislation funded by Joe Biden. Obamacare subsidies are currently accessed by an estimated 22 million Americans.

The Senate on the same Thursday rejected the alternative plan put forward by the Republican Party, which would have replaced Obamacare subsidies with new savings accounts. This plan was pushed by Senators Bill Cassidy (R-LA) and Mike Crapo (R-ID). All Democrats voted against it, as did Rand Paul (R-KY).

"Instead of 100 percent of this money going to insurance companies, let’s give it to patients. By giving them an account that they control, we give them the power," Cassidy, chairman of the Senate Health Committee, said of his alternative proposal.