MITCHELL, SD (Mitchell Now) — U.S. Senate Majority Leader John Thune delivered remarks on the Senate floor this week addressing federal health care policy and the political debate surrounding premium subsidies on the Affordable Care Act exchanges. Thune said recent discussions have focused on temporary subsidy enhancements enacted during the pandemic, which are set to expire at the end of the year.
Thune said the current structure of the health insurance marketplace — including premium subsidies expanded in 2021 and extended in 2022 — was created by Democratic legislation and enacted without Republican votes. Those enhanced subsidies, originally intended as temporary COVID-19 measures, removed the income cap for receiving assistance and increased federal support for premiums.
“The business model that we’re operating under today was created by the Democrats,” Thune said. “And now there’s some expectation that somehow the Republicans are supposed to come here and fix the problem that they created.”
Thune pointed to federal data showing premium increases on individual marketplace plans since the exchanges launched more than a decade ago. He also raised concerns about the structure of exchange subsidies, which are paid directly to insurers, and said some enrollees pay no monthly premium because of the subsidy formula.
In his remarks, Thune said millions of Americans may not be aware they are enrolled in subsidized plans because insurers can automatically reenroll individuals who qualify for no-cost coverage. He said lawmakers should consider reforms that restore income limits and require at least some contribution from enrollees.
Thune emphasized that congressional action will be necessary to address the impending expiration of the enhanced subsidies and to develop what he called a “sustainable business model” that improves affordability and consumer choice.