Sanders: Letting ACA Subsidies Lapse Would Be 'A Tragedy' — Senate Set To Vote On Competing Plans

Sen. Bernie Sanders (I‑Vt.) warned that premium tax credits under the Affordable Care Act (ACA) may expire at the end of the month unless Congress acts, calling a lapse "a tragedy" and urging lawmakers to prevent disruption for millions of families.

"It's a tragedy," Sanders told Kaitlan Collins on CNN's The Source. He added that Americans "are not prepared" for the economic and health-care consequences if the subsidies are allowed to expire on Dec. 31.

The Senate is scheduled to vote Thursday on competing Democratic and Republican proposals to address the subsidies, which were expanded during the COVID-19 pandemic and later extended by legislation enacted after the pandemic.

Democratic Proposal

Senate Democratic Leader Chuck Schumer (N.Y.) plans to introduce a bill to extend the enhanced premium tax credits for three years. That proposal aims to preserve the current subsidy structure and avoid immediate premium spikes for consumers.

Republican Alternatives

Republican senators have advanced multiple alternatives. Sen. John Thune (R‑S.D.) had indicated a willingness to allow votes related to the subsidies as part of shutdown negotiations, but Schumer's three‑year measure is widely expected to fail.

On Monday, Sens. Susan Collins (R‑Maine) and Bernie Moreno (R‑Ohio) introduced legislation to extend the credits for two years while adding income caps on eligibility. Separately, Sens. Bill Cassidy (R‑La.) and Mike Crapo (R‑Idaho) proposed redirecting the credits — which currently go to insurers to lower enrollees' premiums — into Health Savings Accounts paired with bronze or catastrophic plans on ACA exchanges. The Senate will vote on that GOP-backed measure on Thursday.

What Could Happen If Subsidies Expire

If the federal premium tax credits expire on Dec. 31, millions of people could face higher premiums and reduced affordability. The Congressional Research Service (CRS) projected in September that, without an extension, gross benchmark premiums would rise about 4.3% in 2026, 7.7% in 2027, and average roughly 7.9% annually from 2026 through 2034.

CRS also estimated the number of uninsured Americans would increase by roughly 2.2 million in 2026, 3.7 million in 2027, and average about 3.8 million annually from 2026–2034 if the tax credits are not renewed.

Why it matters: The decision affects not only monthly premiums but also overall access to health coverage for people who rely on marketplaces. Lawmakers face a narrow window to pass an extension before year-end, and the outcome will shape marketplace costs and enrollment for years to come.

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