Durbin Slams Republican Party's Failure To Extend The Affordable Care Act's Enhanced Subsidies

Durbin Slams Republican Party's Failure To Extend The Affordable Care Act's Enhanced Subsidies

In his remarks, Durbin emphasized that expiration of these subsides would threaten millions of Americans' access to health care

WASHINGTON - U.S. Senate Democratic Whip Dick Durbin (D-IL) delivered a speech on the Senate floor yesterday highlighting the dangers of the upcoming expiration of the Affordable Care Act's enhanced premium tax credits. First created in 2021 as part of theAmerican Rescue Plan, these credits have reduced the price of health insurance for millions of Americans, but they are now in jeopardy due to congressional Republicans' callous inaction.

Durbin began his speech by recounting his experience as a young father without health insurance and how it influenced his thinking about health care.

"There are life experiences which you carry for the rest of your life because they are so meaningful and change the course of your life," said Durbin. "I'll never forget what it was like to be the father of our new baby, and she had a serious medical condition, and I had no health insurance. I never felt more helpless than I did in that moment. It's a terrible feeling I wouldn't wish on anybody."

Durbin continued, "That experience comes to mind when I think about health care… When we expanded the ACA premium tax credit in 2021 and 2022, making insurance more affordable for tens of millions of Americans, we set a record. There were more Americans covered by health insurance as a result of those actions than ever in our history."

Durbin went on to emphasize that due to Republicans' inaction, these tax credits are set to expire at the end of the year, threatening the recent gains in national health insurance coverage.

Durbin said, "Unfortunately, my Republican colleagues are preparing to subject millions of Americans to that stress-filled, sleepless night that's part of heading up a family when you have no health insurance… If they [the enhanced premium tax credits] are not renewed, insurance premiums will spike across the country for the people least likely to be able to pay, and millions and millions of Americans will lose their health care."

While the initial Affordable Care Act subsidized and capped health insurance premiums on Marketplace plans for families making 100-400 percent of the federal poverty level, it did not cover any family earning over 400 percent of the federal poverty level. This created a "subsidy cliff," where a family who earned even one penny over the 400 percent threshold would suddenly lose access to the ACA's subsidies and price caps on Marketplace plans, causing their insurance premiums to spike by thousands of dollars.

The American Rescue Plan got rid of this "subsidy cliff" by expanding the price caps and subsidies contained in the ACA to families making above 400 percent of the federal poverty line. It capped the maximum Marketplace monthly premium at 8.5 percent of a family's income and expanded the subsidies for those making under 400 percent of the federal poverty level. These subsidies were later extended in the Inflation Reduction Act to last until the end of 2025.

Durbin explained how the expansion of these premium tax credits revolutionized health care affordability.

Durbin said, "This cap on premiums makes health care affordable for millions of Americans. Some only have to pay as little as $10 a month for coverage, and others pay almost nothing. Since the creation of these enhanced tax credits, the number of Americans enrolled in ACA plans has almost doubled-from 11.4 million in 2020 to 24.3 million in 2024."

Durbin continued, "These credits are especially important for people living in small towns, as they often have few options and higher insurance premiums."

Durbin later highlighted the impacts that the expiration of these subsidies will have for families and hospitals in America.

"The expiration of these tax credits… will devastate families of limited means and threaten the existence of hospitals all across the country," Durbin said. "If Republicans allow these tax credits to expire, insurance premiums are going to skyrocket by more than 75 percent for most Marketplace plans. In Illinois, a family of four making $126,000 could see their annual premiums increase by $7,500. A couple making $82,000 could see a more than $17,000 annual increase."

Durbin noted that a recent Congressional Budget Office report estimated that four million people will become uninsured because of the expiration of the ACA enhanced premium tax credits.

"That's four million people who won't know whether they will be able to afford a hospital bill if their child has an injury, four million people who might have to forgo a doctor's visit because they can't afford it. Millions of people will be forced to put off a dentist's visit because they lost their health care," Durbin said.

Durbin then shared two messages he received from Illinois constituents outlining their concerns about the upcoming expiration of these tax credits.

Durbin first shared the story of Kristen, from Rochester, Illinois, who said in a message to his office, "As a previously very healthy person recently diagnosed with a long-term degenerative disease, health care is at the top of my mind. Without health insurance, one of my multiple medications could cost $7500… I depend on the ACA Marketplace for insurance. Without these subsidies, I would be unable to cover the cost of my care."

Durbin then relayed the message he received from Zachary, located in Highland, Illinois, who wrote, "Please do everything you can to protect the Affordable Care Act. It has been a lifesaver for my family. We have four children, and starting our own business is not easy when factoring in health care cost. It would ruin us if we lost the benefits from the Affordable Care Act."

Durbin concluded his speech by urging his colleagues to act and prevent the expiration of the ACA's enhanced premium tax credits in order to protect millions of Americans' health insurance.

"Now it's time to do something meaningful," said Durbin. "Let us come together on a bipartisan basis and say that this was a serious mistake. Families of limited and modest means need a helping hand for health insurance. Let's give them a peace of mind to know that the most expensive medical bills will be covered."

Video of Durbin's remarks on the Senate floor is available here.

Audio of Durbin's remarks on the Senate floor is available here.

Footage of Durbin's remarks on the Senate floor is available here for TV Stations.

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