House Republicans have unveiled a new health care plan following setbacks in the Senate regarding health care cost measures. This proposal, released on December 4, 2025, comes as the expiration of enhanced Affordable Care Act (ACA) tax subsidies approaches. These subsidies, designed to make health coverage more affordable, are set to end on December 31, risking significant premium increases for millions of Americans.
Key Points of the New House GOP Health Care Plan
- The proposed legislation does not extend the ACA tax credits.
- It includes provisions for small businesses to collaboratively purchase insurance.
- New regulations for pharmacy benefit managers aim to reduce drug costs.
- Beginning in 2027, the plan introduces cost-sharing reduction payments for low-income individuals.
- Health plans covering abortion services will be excluded from coverage options.
House Speaker Mike Johnson stated that the goal of the plan is to improve access to care and restore integrity to the health care system. A vote on this new proposal is anticipated next week.
Responses to the Proposal
Democratic leaders are critical of the Republican plan. House Minority Leader Hakeem Jeffries labeled it as harmful to ordinary Americans due to the failure to extend ACA tax credits. He voiced these concerns on social media, emphasizing that the proposal lacks seriousness.
The Senate had been debating a separate proposal to extend the ACA subsidies for three years. This effort, supported by some Republicans, did not succeed in overcoming the necessary 60-vote threshold required for passage.
Implications for Health Care Future
President Trump has advocated for a shift away from tax credits, suggesting direct funding for individuals instead. He believes this approach would empower people to secure their own health care. In the recent Senate GOP proposal, there was mention of creating health savings accounts for low-income Americans earning less than 700% of the federal poverty level. However, this was absent from the House proposal.
Recent discussions indicate some Republicans in the House are considering alternative strategies to extend ACA subsidies, which could impact the upcoming midterm elections. Many express concern over potential backlash from constituents regarding the discontinuation of these critical subsidies.
Overall, as the year draws to a close, the urgency for legislative action on health care is escalating. The future of health coverage, particularly for vulnerable populations, hangs in the balance as Congress navigates this contentious issue.
