Week in Washington

ACA Subsidies Update

Congress continues to be focused on the question of the expiring enhanced subsidies. This week there were two updates:

• The House passed a healthcare package aimed at improving affordability but did not include extending subsidies. The package is not expected to be passed in the Senate as it included only Republican priorities such as expanding self-insurance for small businesses, expanding eligibility for association health plans, and paying for cost-sharing reductions.
• Simultaneously, moderate House Republicans voted for a discharge petition to bring forth a vote on a three-year extension for enhanced premium subsidies. The vote is likely to occur sometime in January. It’s possible that passage of a bill would reopen discussions around enhanced premium subsidies.

Kaiser Suppressed in Georgia

The Georgia Department of Insurance issued an order to suppress (halt new enrollment) in Kaiser’s Exchange plan. The order takes effect starting January 16. The DOI was concerned that the Kaiser did not have sufficient capacity to provide services for more enrollees.

Economy

The Federal Reserve cut interest rates again last week. The cut comes in response to deteriorating economic conditions, namely concerns around higher unemployment. The Federal Reserve hinted at one more rate cut in 2026 but may wait and see balancing out higher inflation and lower employment levels.

Nebraska Unveils Work Requirement

Nebraska announced it would be the first state to implement the new federal work requirements for Medicaid beneficiaries that ultimately will be required of all states. While the federal deadline isn’t until 2027, states are allowed to implement work requirements ahead of the deadline. Nebraska stated that it would begin its implementation May 1, 2026. The state expects that 30,000 Medicaid beneficiaries will lose coverage as a result of implementing work requirements.

Thanks to all for reading the blog this year. Happy holidays!