Sens. Bernie Moreno, R-Ohio, and Susan Collins, R-Maine, reportedly are pitching a plan to extend Obamacare subsidies for two years with income caps and other reforms.
The emerging framework, first outlined Monday by Punchbowl News, pairs two senators from very different wings of the GOP conference in an effort to avoid what Republicans privately worry could become a year-end "subsidy cliff" that drives premiums higher for many families enrolled through the Affordable Care Act exchanges.
According to Punchbowl, the Moreno-Collins proposal would keep the enhanced tax credits in place for two years but tighten eligibility by restoring an income cap and phasing out benefits for higher earners.
Under the plan, households would receive the full tax credit up to 400% of the federal poverty level.
The credits would then gradually phase out until households making more than $200,000 would no longer qualify.
The one-pager also calls for ending so-called "zero-premium" plans by requiring at least a $25 monthly payment — a move supporters argue would strengthen program integrity and curb incentives that can distort enrollment.
Senate Democrats, meanwhile, are set to force a vote this week on legislation extending the tax credits for three years. The vote was promised by Senate Majority Leader John Thune, R-S.D., during talks that ended a lengthy government shutdown, according to Punchbowl.
But the Democrat bill is expected to fall well short of the 60 votes needed to advance.
Politico similarly reported that Democrats are poised to get the three-year extension vote, while Republicans are leaning against holding a separate vote on a GOP alternative because of internal divisions.
The decision is not final, Politico noted, and some Republicans could attempt to advance proposals, such as the Moreno-Collins plan, through unanimous consent.
The split is increasingly visible on Capitol Hill. Punchbowl described simmering frustration among some GOP lawmakers who want a recorded vote on a Republican approach, not simply on a "clean" Democrat extension, while leaders are wary of staging a vote that could fracture the conference.
The Hill reported that Republicans are caught between swing-district and centrist voices pushing for some form of extension to prevent premium spikes, and conservatives who oppose continuing the Biden-era subsidy expansion enacted during the COVID-19 pandemic.
The Hill also noted that some pro-life Republicans are demanding explicit limits on exchange plans covering abortion — language not included in centrist proposals.
On the House side, Speaker Mike Johnson, R-La., has teased a broader healthcare package expected to focus on expanding options beyond Obamacare rather than extending subsidies, Politico reported.
Punchbowl added that Johnson is weighing whether any House plan will include a subsidy extension at all — a key question as moderates float a possible discharge petition to force action.
For Republicans, the Moreno-Collins effort signals a push to pair affordability with guardrails: extending relief in the near term, while reining in benefits for upper-income households and adding basic consumer cost-sharing to discourage "free" coverage.
Newsmax Wires contributed to this report.
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