Bipartisan Proposal Advances Two-Year Extension of ACA Tax Credits

A bipartisan proposal led by Representatives Jen Kiggans (VA-2) and Josh Gottheimer (NJ-5) has emerged to extend Affordable Care Act (ACA) tax credits for two years, addressing concerns over a potential increase in health insurance premiums when the current credits expire on January 1, 2026. The proposal, named "Common Ground 2025," includes measures to enhance oversight and prevent fraud, along with an extended ACA open enrollment period through March 19. The framework suggests a phased approach where the first year focuses on targeted subsidy modifications while the second year introduces broader reforms to be finalized by mid-2026 through congressional approval. Over 30 members of the House from both parties have endorsed the plan, signaling a cooperative effort to stabilize health insurance markets and maintain affordable coverage. Senate Democrats are also preparing their own plan, reportedly recommending a three-year extension of ACA tax credits. Senator Tim Kaine of Virginia highlighted the intent to balance immediate relief for healthcare costs with the pursuit of bipartisan, long-term healthcare reforms. The timing of these legislative efforts is critical, as failure to act will result in the expiration of ACA tax credits at the start of 2026, potentially causing premium hikes for thousands of Americans. The bipartisan push reflects ongoing negotiations within Congress over how to sustain and reform health insurance subsidies amidst competing policy priorities. The proposed extension and reform efforts encompass insurance market stability, regulatory compliance, and fraud mitigation, factors that influence both payer and provider operations under the ACA framework. Maintaining support for ACA tax credits remains central to current U.S. health insurance policy discussions and the broader goal of affordable healthcare access.