Bipartisan Senate Talks Reignite as ObamaCare Subsidy Deadline Looms

Dec 16•3 min read

The Senate resumed bipartisan talks to extend enhanced ACA subsidies as the end-of-month deadline nears. About 20 senators, led by Sens. Susan Collins and Bernie Moreno, used a two-year extension proposal as a starting point and left the meeting cautiously encouraged. Lawmakers said a deal before the holidays is unlikely, with January a more realistic target; disagreements remain over the extension length, subsidy reforms and abortion-related language.

A bipartisan group of roughly 20 senators revived negotiations Monday night as the end-of-month deadline to extend enhanced Affordable Care Act (ACA) subsidies approaches. Lawmakers used a proposal from Sen. Susan Collins (R-Maine) and Sen. Bernie Moreno (R-Ohio) — a two-year extension of tax credits paired with reforms aimed at conservatives — as a starting point for talks.

Meeting Results and Mood

Attendees described the hour-plus session as constructive and practical. Several key negotiators said they left encouraged and expected follow-up conversations, with some suggesting a framework for a deal could emerge by week’s end. Still, most conceded that final passage before the holidays is unlikely and that January is a more realistic target.

"There is widespread support for producing a result," Collins told reporters after the meeting. "There was no grandstanding. People were very practical and they want a result."

What's On The Table

Senators discussed a range of proposals and guardrails, including:

How long to extend enhanced subsidies — proposals ranged from a clean extension to multi-year compromises (Collins/Moreno propose two years; Democrats previously advanced three).
Potential reforms to the subsidy program to appeal to conservatives, including targeted eligibility or work requirements framed as guardrails.
Extending open-enrollment windows; most state exchanges allow sign-ups through Jan. 15, but coverage effective Jan. 1 required earlier enrollment.
Abortion-related language: conservatives pushed for Hyde Amendment–style restrictions barring federal funds for abortion to be included in any package.

Recent Floor Votes That Shaped Momentum

The meeting followed two high-profile, partisan floor votes that failed to advance but helped focus attention. A Republican plan from Sens. Mike Crapo (R-Idaho) and Bill Cassidy (R-La.) would have redirected subsidy funding into health savings account (HSA) contributions to cover out-of-pocket costs; it failed on an almost party-line vote. A Democratic measure to extend enhanced subsidies for three years attracted four Republican votes — Sens. Lisa Murkowski (Alaska), Dan Sullivan (Alaska), Josh Hawley (Mo.) and Collins — and helped spur renewed bipartisan talks.

Political Dynamics And Outlook

Senators said the meeting aimed to cool political temperatures after weeks of mutual accusations: Republicans asserting Democrats prefer the issue for political leverage, and Democrats blaming Republicans for allowing subsidies to lapse and health-care costs to rise. Some lawmakers remain skeptical a compromise can clear the 60-vote Senate threshold.

"Those conversations continue, but there isn’t anything I would say at the moment … that can probably be something signed into law," Senate Majority Leader John Thune (R-S.D.) told reporters.

Other senators expressed guarded optimism about the process even as obstacles remain. Outside the Senate, House GOP leadership is preparing a separate health-care package that does not include a subsidy extension, while three active discharge petitions (two from GOP moderates and one from Democrats) could force a House floor vote on extending the enhanced subsidies if they reach enough signatures.

Bottom Line

Negotiators made modest progress and signaled willingness to keep working, but significant policy and political differences — including the length of any extension, proposed reforms, and abortion-related provisions — make a quick resolution unlikely. January now appears the likeliest window for any bipartisan agreement to coalesce.