Democrats race to reach deal to prevent spike in health premiums

Democrats see hope for spending deal with Manchin as Congress returns

The most urgent concern involves the fate of tax credits that help low- and middle-income Americans purchase health insurance annually. Unless Congress extends these subsidies, roughly 13 million people will see their monthly premiums spike in January, according to an estimate from Kaiser Family Foundation — in some cases by hundreds of dollars per person.

Some Democrats also hope to offer new help to the roughly 2.2 million people, mostly women and people of color, who find themselves in an even tougher financial bind: They’re too poor to qualify for federal aid yet unable to enroll in Medicaid because they live in 12 states where Republican leaders have refused to expand program eligibility.

Democrats initially sought to address both matters as part of the roughly $2 trillion Build Back Better Act that President Biden endorsed, and House lawmakers adopted, at the end of last year. In the Senate, however, Manchin opposed that broader package largely out of fiscal concerns. Some of his trepidation extended to some proposed health care spending by Democrats, raising questions as to how far they might have to scale back their ambitions to end the logjam.

Many Senate Democrats wouldn’t discuss the confidential negotiations on Tuesday. But lawmakers exited a private party lunch insisting they are making progress despite months of delay.

“I’m fully expecting to be voting on a reconciliation bill before we leave here in August,” said Sen. Tim Kaine (D-Va.), adding that “continuing the subsidies” that help millions afford insurance is “very much key to it.”

A spokesman for Senate Majority Leader Charles E. Schumer (D-N.Y.) declined to comment on the talks. Sam Runyon, a spokeswoman for Manchin, pointed to his past comments, noting the senator remains concerned about “rising inflation, a pending recession and the state of American energy security.”

“He continues to work in good faith to see if there is a pathway forward to shore up domestic energy production and reduce emissions, lower health care costs for seniors and working families, and ensure everyone is paying their fair share of taxes,” she said in a statement.

For Democrats, the matter strikes at the heart of the legacy of the Affordable Care Act (ACA), now more than a decade old. Lawmakers maintain their work is unfinished in lowering the costs of coverage, reducing the price of drugs and expanding access to care in a nation where one malady can lead to financial ruin — and roughly 30 million people still do not have insurance.

On the road to…