Moreno introduces plan for temporary ACA tax credit, path to end COVID-era subsidies

U.S. Sen. Bernie Moreno, R-Ohio, and Senate Appropriations Committee Chairwoman Susan Collins, R-Maine, plan to introduce the Consumer Affordability and Responsibility Enhancement Act, which would cap income eligibility and eliminate zero-premium plans.

“Barack Obama and the Democratic Party created this disaster, lining the pockets of massive insurance companies while healthcare costs for everyday Americans skyrocketed,” Moreno said in a statement, adding that he will be collaborating with other lawmakers to deal with the problem.

Collins said that American lawmakers need to “pursue practical solutions that increase affordability without creating sudden disruptions in coverage,” while remembering that families across the country are “struggling with the high cost of health care.”

“This bill would help prevent unaffordable increases in health insurance premium costs for many families by extending the Affordable Care Act enhanced premium tax credits for two years and putting a reasonable income cap on these subsidies to ensure they are going to the individuals who need them,” she said.

The CARE Act will provide a temporary extension of Affordable Care Act premium tax credits through 2027 by giving Americans a two-year “glidepath” off the COVID-era subsidies, ending premium tax credits once household income reaches $200,000 and requiring a $25 per month premium, according to the press release.

The enhanced premium tax credits, introduced in 2021 by the American Rescue Plan Act and extended through 2025 by the Inflation Reduction Act, have dramatically reduced marketplace health insurance costs and fueled enrollment growth, increasing it from about 11 million to over 24 million, according to Cleveland.com.

These subsidies will expire at the end of 2025 unless Congress takes action.

Other Ohio lawmakers have also tried to help Buckeye State residents with the high cost of healthcare.

Among them was Sen. Jon Husted, R-Ohio, who introduced a bipartisan bill, the Streamlined Market Access and Reform for Therapeutics Over-the-Counter Act. After President Donald Trump signed the bill, it would help Ohioans who cannot afford medications.

“Ohioans deserve access to affordable, high-quality health care. Reducing barriers to safe medications empowers the American public to take charge of their health without the fear of burning a hole through their pocket,” he said. “With the SMART OTC Act now law, families will have access to more over-the-counter medicines.”

At the state level, Ohio Rep. Michele Grim, D-Toledo, also introduced a bipartisan proposal, House Bill 257, to help protect Ohioans from the negative impact of medical debt.

The Ohio Medical Debt Fairness Act would set the maximum interest rate on medical debt at 3% per year, ban wage garnishment for medical debt collections and bar hospitals, medical providers and third-party collectors from reporting medical debt to credit agencies.

“Medical debt can happen to anyone, and no one should face financial hardship just because they need care,” Grim said. “This bipartisan effort is about fairness, dignity and protecting Ohio families from a broken system that too often punishes people for getting sick.”