Frustrated Republican Centrists Join Democrats to Force ACA Vote

SPEAKER_1 (0:00)

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Julie Chang (0:18)

The Oscars are leaving their long-time home at ABC, shifting from traditional TV broadcasting to YouTube. Plus, a group of frustrated GOP centrists side with House Democrats to force a vote on extending health care subsidies.

Siobhan Hughes (0:34)

To see this group of Republicans who are pretty much go-along, get-along guys, not likely to be difficult for leadership, do this, really underscores the political potency of the insurance issue.

Julie Chang (0:45)

And what's next for Paramount after Warner rejects its bid again? It's Wednesday, December 17th. I'm Julie Chang for The Wall Street Journal, and I'm sitting in for Alex Osala. This is the PM Edition of What's News, the top headlines and business stories that move the world today. Four House Republicans have bucked their leadership and sided with Democrats on an attempt to extend health care subsidies for millions of Americans. The four provided the final signatures needed to force a floor vote on the Enhanced Affordable Care Act subsidies. Those tax credits are set to go back to levels from before the pandemic, meaning higher health care costs next year for many Americans. One of the dissenting Republicans, New York representative Mike Lawler says, Congress has a responsibility to act when leadership blocks action entirely. House Speaker Mike Johnson objects to the maneuver. He spoke on CNBC early this morning.

SPEAKER_4 (1:48)

You know, doing an end run around the majority party, the speaker or the regular process is not the best way to make law.

Julie Chang (1:55)

Siobhan Hughes, who covers Congress for the Wall Street Journal, is joining us now from the Senate Press Gallery. Siobhan, why are these particular lawmakers going against their leadership?

Siobhan Hughes (2:05)

It is absolutely extraordinary to see this group of Republicans buck their own House leadership, essentially muscle Speaker Johnson aside and say, no, no, no, you must schedule a vote on this bill. To see this group of Republicans who are pretty much go-along, get-along guys, not likely to be difficult for leadership, do this, really underscores the political potency of the insurance issue. These Republicans are all in very, very tough races next year. And health care is going to be on the ballot. Everybody remembers the 2018 elections were very much about Republican efforts to try to repeal and end the Affordable Care Act. And so fearing a repeat of the blue wave in 2018, these Republicans are jumping out to defend their own constituents' interests.

Julie Chang (2:55)

So what could this mean for Americans' health care costs?

Siobhan Hughes (2:58)

The premiums of the 24 million people who have Affordable Care Act coverage are going to spike next year. Subsidies will revert to pre-pandemic levels, and people making over 400% of the federal poverty line will lose subsidies entirely. But that is not going to be the final word. There is going to be a vote in January in the House on a three-year extension of the subsidies. And while that version is not going to make it into law, there are very intense and real conversations among both Republicans and Democrats about how to, in some form, extend these subsidies. Oh, and by the way, Democrats have a hammer that they can use here. Funding for much of the federal government expires starting on January 31st. And so in theory, Democrats could trigger another government shutdown if they wanted to make a point about this.

Julie Chang (3:52)

So this forced maneuver could make it more likely to extend the subsidies?

Siobhan Hughes (3:56)

Absolutely. It's going to put enormous pressure on Republicans to do something because it puts a very fine point on the fact that their House majority is on the line over health care costs. And it also reminds the Senate Republicans that they too could either lose or more likely see their majority diminished over this issue.

Julie Chang (4:17)

The House is also voting on a GOP health care bill today. Is that related to the push to extend the health care subsidies?

Siobhan Hughes (4:23)

House Republicans know that they need to come up with an alternative, a way of showing that they too care about these high premiums. Their answer, though, has nothing to do with extending federal government subsidies. It has to do with technicalities involving funding certain cost sharing reductions that go to low-income people on the exchange plans and also allowing more big groups to come up with their own health insurance. Democrats don't like these so-called association plans because they don't mandate essential coverage like for maternity care, for prescription benefits, the way your ACA plan does. But nonetheless, Republicans have data showing that this would reduce premiums by about 11%.