A bipartisan group of senators is closing in on a deal to revive expired Obamacare subsidies, potentially setting up a major healthcare vote as lawmakers look to balance affordability concerns with new restrictions on the program.
According to Politico, the talks are being led by freshman Sen. Bernie Moreno, R-Ohio, who said Wednesday that draft legislation could be released as early as next week.
The proposal would restore enhanced Obamacare tax credits that expired Jan. 1, extending them for two years while adding new guardrails aimed at limiting costs and tightening eligibility, the report said.
"Realistically, probably Monday," Moreno said when asked about a timeline for final legislative text.
The tentative agreement would impose new conditions, including a minimum monthly premium payment and an income cap to prevent higher earners from qualifying.
Lawmakers involved in the talks are considering cutting off eligibility for individuals earning more than roughly 700% of the federal poverty level, along with requiring a minimum premium of $5 per month.
The proposal would also include new penalties for insurance companies accused of enrolling people in subsidized coverage without their knowledge, a practice critics have labeled "phantom enrollment."
In addition, the framework under discussion would expand access to health savings accounts and include new cost-sharing reduction measures.
Moreno said the plan would give Americans receiving Obamacare subsidies the option, during the second year of the extension, to have those funds deposited into a prefunded health savings account instead.
Sen. Susan Collins, R-Maine, said she is "encouraged" by the progress, while two other individuals familiar with the negotiations described the group — made up of roughly a dozen senators — as nearing consensus, Politico reported.
Still, significant hurdles remain. Even if the group finalizes an agreement, it is unclear whether the proposal would garner enough support to pass the Senate or survive scrutiny in the House.
One lingering issue involves concerns that Obamacare subsidies could be used to help pay for insurance plans that cover abortion.
Moreno said the emerging framework would not change existing abortion policy and emphasized that negotiators are focused on complying with the Hyde Amendment, which bars federal funding for abortions.
"We're trying to resolve how we ensure compliance with the spirit" of Hyde, Moreno said, calling abortion a "peripheral" issue in the talks.
After subsidies expired, Obamacare premiums rose and enrollment dropped to 15.6 million for 2026 from about 16 million last year, Dr. Mehmet Oz, administrator of the Centers for Medicare & Medicaid Services, said last month.
© 2026 Newsmax. All rights reserved.