Bipartisan senators quietly work on Obamacare subsidy fix after deadline lapses
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A bipartisan group of senators is still working on a solution to the now-expired Obamacare subsidies and believe it could be close to a proposal that could make it to the Senate floor.
The conference, which met several times during Congressional recess, adjourned again behind closed doors Monday evening. Senators Susan Collins, Republican of Maine, and Bernie Moreno, Republican of Ohio, are leading discussions among several Senate Republicans and Democrats seeking a compromise solution.
Most meeting attendees remained tight-lipped about the details of the still-pending proposal, but Collins noted the plan was similar to her and Moreno’s initial offer.
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Senators Susan Collins, Republican of Maine, and Bernie Moreno, Republican of Ohio, announced plans to extend expiring Obamacare subsidies for two years, include income caps and end free premiums. (Anna Moneymaker/Getty Images; Andrew Harnik/Getty Images)
“Some parts of the bill are similar to what Senator Moreno and I initially proposed, with a two-year extension, with some reforms in the first year, and then more substantial reforms in the second year,” she said.
Their original plan – one of several circulating in the Upper House – would have extended the subsidies for two years, capped credit income for households earning up to $200,000 and eliminated free premiums as a fraud prevention measure by requiring a minimum monthly payment of $25.
Sen. Tim Kaine, D-Va., one of the lawmakers who regularly attends the meetings, said the talks are going well.
“We had a really good discussion last night,” Kaine said. “I don’t want to characterize it other than that we had a very good discussion.”
And Senate Majority Leader John Thune, R-S.D., said he received an update on the negotiations from Moreno Tuesday morning and believed the bipartisan meetings had been productive.
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President Donald Trump gestures to the crowd as he walks off stage after addressing Republican lawmakers in the House of Representatives during their annual policy retreat in Washington, January 6, 2026. (Evan Vucci/AP Images)
However, any plan that is presented must meet several criteria for Republicans, including anti-fraud safeguards, a transition to health savings accounts (HSA) and stricter anti-abortion language.
“The key is reforms, obviously, and then how to navigate them [the Hyde Amendment]” said Thune. “I think that’s probably the hardest part of all of this. But again, I think there’s potentially a path forward, but it’s something that needs to get a big vote, definitely a big vote. »
The issue of the Hyde Amendment poses an obstacle for both sides, as Senate Republicans are demanding changes to subsidies, and Obamacare more broadly, to prevent taxpayer dollars from funding abortions.
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Senators Susan Collins, Republican of Maine, and Bernie Moreno, Republican of Ohio, are leading discussions among several Senate Republicans and Democrats seeking a compromise solution. (Eric Lee/Bloomberg via Getty Images)
That debate took a turn Tuesday when President Donald Trump told House Republicans “you have to be a little flexible” when it comes to the Hyde Amendment.
That sparked mixed reactions from Republicans in the upper house.
Sen. James Lankford, Republican of Oklahoma, said he had “no idea of the context” of Trump’s remarks but said he was ardently opposed to defunding abortions.
“I say I’m not flexible about the value of human life,” Lankford said. “Life has value. I don’t believe that some children are disposable, and some children have value. I think all children have value.”
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Senate Democrats largely viewed Trump’s comments as a sign of progress — perhaps Republicans would move on the Hyde issue. But flexibility goes both ways, and Sen. Ron Wyden, D-Ore., and ranking Democrat on the Senate Finance Committee, was not ready to budge on the issue.
“I’m not going to open the door to Hyde, given what’s happening and what’s been observed historically when you do that,” he said. “If you open the door it will quickly get drafty and I’m not going to let that happen.”
Moreno signaled that Republicans may have to compromise on the issue if they want to move forward with any type of health care solution that might pass the Senate.
He noted that there was a feeling that “maybe the language of Obamacare wasn’t as true to that philosophy.” [of Hyde] as it should be. »
“But that’s not something we’re looking to change now,” he said. “Because, frankly, if you put Hyde up for a vote by Democrats today, unlike Democrats 20 years ago, the vote would probably fail by a vote of 46 to one on the Democratic side. Unfortunately, most Democrats today believe there should be federal funding for abortion.”
