Bipartisan Proposal Seeks to Extend ACA Premium Tax Credits to Curb 2026 Rate Hikes

U.S. Representatives Jen Kiggans (R-VA) and Josh Gottheimer (D-NJ) have introduced a bipartisan health care proposal aiming to mitigate upcoming health insurance premium increases by extending enhanced Affordable Care Act (ACA) premium tax credits (ePTCs) through 2026. The plan targets enrollees earning up to 600% of the federal poverty level, maintaining affordability for millions who buy health insurance through the ACA marketplace. It also proposes extending the open enrollment period through March 19 to facilitate greater access. The proposal has garnered support from a bipartisan group of 35 House members and includes recommendations to phase out COVID-era ePTCs gradually starting with individuals earning between 600% to 1000% of the federal poverty level. This phased approach seeks to balance short-term affordability with longer-term fiscal responsibility by avoiding an abrupt termination of tax credits at year's end, which could result in significant premium spikes. Despite bipartisan backing in the House, the initiative faces uncertain prospects in Congress, particularly among House Republicans who currently control both chambers. House Majority Leader Steve Scalise has indicated the framework is not included in the current Republican health care strategy. However, Kiggans has engaged with party leadership to advocate for bipartisan collaboration on the issue. Kiggans has expressed openness to future ACA reforms, including proposals to expand Health Savings Accounts, but stresses that immediate attention should focus on preventing premium hikes in 2026. Approximately 40,000 residents in her district rely on ACA plans, emphasizing the local impact of federal policy decisions. The legislation signals ongoing Congressional interest in stabilizing the ACA marketplace amid changing economic conditions and evolving health care policy priorities. The collaboration exemplifies ongoing efforts to reconcile partisan differences on health insurance affordability, regulatory compliance, and marketplace stability. The proposal also underscores the complexities of managing COVID-era policy interventions as lawmakers navigate extensions and phaseouts of emergency health care measures. Its outcome may influence broader debates on payer-provider dynamics, health insurance market regulation, and consumer protection ahead of the next open enrollment cycle.