Obamacare costs look set to spike for millions of Americans as Senate rejects duelling bills

December 11, 2025

The Senate has rejected both Democratic and Republican healthcare bills, meaning enhanced Affordable Care Act subsidies for over 24 million Americans will likely expire on January 1st. Without these additional tax credits that Democrats enacted during the 2021 COVID pandemic, insurance premiums are expected to more than double by year's end. Both proposals failed to reach the required 60-vote threshold, with the Republican health savings account plan and the Democratic three-year extension each falling short by a 51-48 margin.

Who is affected

More than 24 million Americans with health insurance through Obamacare/ACA
Americans earning less than 700% of the federal poverty level (targeted by Republican proposal)
Insurance companies that receive subsidy payments
Senate Democrats and Republicans facing midterm elections
Four Republican senators who crossed party lines: Susan Collins (Maine), Josh Hawley (Missouri), Dan Sullivan (Alaska), and Lisa Murkowski (Alaska)

What action is being taken

Senate is rejecting competing healthcare bills (both Democratic and Republican proposals failed)
Trump and Republicans are developing alternative solutions to lower healthcare costs (according to White House press secretary)
Republicans are speaking out against subsidy extensions
Democrats are warning about the consequences of inaction

Why it matters

This issue matters because millions of Americans face potentially doubled insurance premiums starting January 1st, significantly impacting their cost of living during a time when economic concerns are already high among voters. The failure to reach a compromise represents a major political risk for Republicans, as an overwhelming majority (74%) of Americans across political affiliations support extending the subsidies, and some Republican lawmakers have warned that mishandling healthcare could cost them their legislative majorities in the upcoming midterm elections. The standoff also reflects deeper partisan divisions over the Affordable Care Act's effectiveness and role in the healthcare system.

What's next

No explicit next steps stated in the article (though the White House indicated Trump and Republicans "are currently coming up with creative solutions and ideas" without providing details or timeline).

Read full article from source: BBC