House Extends Medicare Hospital-at-Home Funding as ACA Subsidies Face Expiry

The U.S. House of Representatives has passed the Hospital Inpatient Services Modernization Act of 2025, extending Medicare funding for acute hospital-at-home services for an additional five years. This move demonstrates bipartisan support for innovative healthcare delivery models that aim to enhance patient care outside traditional hospital settings. Meanwhile, the expiration of Affordable Care Act (ACA) subsidies is looming, with Congress currently deadlocked and unlikely to extend these tax credits. The potential lapse of ACA subsidies by the end of the year risks a significant increase in health insurance premiums, potentially doubling costs for over 20 million Americans insured through Obamacare. This premium surge poses financial challenges for both insured individuals and major insurance carriers, which may experience adverse impacts on their earnings as some consumers opt to forgo coverage. On the legislative front, Republican lawmakers are working to develop an alternative healthcare policy; however, consensus on the specifics of their plan remains elusive amid the impending ACA subsidy expiration. In addition, broader political developments affecting congressional dynamics and legislative priorities include calls for stock trading bans among members of Congress and notable turnover rates within the House, factors that may influence future healthcare and insurance-related policy-making. These developments reflect the complex landscape of health policy, regulatory uncertainty, and market implications for insurers and policymakers heading into the new year.