President Donald Trump is reportedly preparing to announce a two-year extension of Affordable Care Act (ACA) subsidies, which are scheduled to expire at the end of December. This extension is vital as nearly 22 million Americans could see their insurance premiums more than double if the subsidies are not renewed. The urgency of this issue was underscored during the recent 43-day government shutdown, where Democrats highlighted the need for a resolution in their negotiations.

The proposed legislation, known as the "Healthcare Price Cuts Act," aims to alleviate the financial burden of subsidy expirations by introducing new eligibility criteria for tax credits. Trump is expected to urge Congress to expedite the passage of this proposal. Senate Republicans have committed to holding a vote on the matter by mid-December, a condition that was part of the negotiations to end the government shutdown.

Key components of the plan include a requirement for recipients to make a minimum premium payment and the elimination of current "zero-premium" subsidies, which have faced criticism for potentially enabling fraudulent claims. Additionally, the proposal includes a deposit program designed to incentivize individuals to choose lower-premium options on the ACA exchange. The cost differences from downgrading coverage would be allocated to a Health Savings Account funded by taxpayer dollars.

Treasury Secretary Scott Bessent emphasized the urgency of addressing healthcare affordability, particularly as the holiday season approaches. A recent poll from the non-partisan healthcare research group KFF revealed that 74 percent of Americans support extending the subsidies, a sentiment echoed by 50 percent of Republican respondents.

Trump's announcement is anticipated to occur at the White House, alongside Dr. Mehmet Oz, the administrator for the Centers for Medicare & Medicaid Services. Previously, Trump has expressed a preference for a healthcare model that allows funds to be directed to consumers rather than insurance companies, framing this approach as a means to empower individuals in their healthcare decisions.