Key Republicans Oppose Obamacare Tax Credit Extension (1)

Three key Republicans are already throwing cold water on a bipartisan push to extend enhanced Obamacare premium assistance beyond this year.

House Budget Committee Chairman Jodey Arrington (R-Texas) and House Freedom Caucus Chairman Andy Harris (R-Md.) said the enhanced tax credits, put in place to expand coverage during the Covid-19 pandemic, should end. House Ways and Means Committee Chairman Jason Smith (R-Mo.) has also questioned the need to extend benefits that can subsidize insurance plans held by six-figure earners.

The consensus among Republicans leading key committees and factions spells danger for any hope of extending the expanded coverage ahead of a Dec. 31 expiration date. Absent the enhanced credits, out-of-pocket premiums on Affordable Care Act marketplaces will go up for those recipients, forcing some to pay more or lose access to coverage.

Their comments come after Rep. Jen Kiggans (R-Va.) along with other Republicans and some Democrats introduced a bill (H.R. 5145) last week to extend the credits by one year.

“Covid is over, they should go away,” Harris told reporters Tuesday.

Beyond the emergency situation, Arrington said Tuesday, it isn’t good policy.

Congress passed a law (Public Law 117-2) during the pandemic to make the credits more generous for low-income earners and allowed more individuals to qualify for the assistance. Those provisions expire at the end of the year.

Read More: ACA Tax Credit Extension Draws Democrats’ Focus on Key Panels

Support for the enhanced credits, even among GOP backers, is qualified. Rep. Mike Lawler (R-N.Y.), a Kiggans co-sponsor up for re-election in a swing district, said Covid-era policies eventually need to wind down.

“The question is how to appropriately phase it out and give people the opportunity, obviously, to help offset cost,” Lawler said. “We want to make sure that people are not getting whacked with a huge increase in cost.”