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White House may extend ACA (Obamacare) subsidies for two

years

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Trump faces political balancing act on rising premiums

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Insurer shares jump on extension reports

By Jarrett Renshaw

Nov 24 (Reuters) - The White House is preparing to

unveil a health policy framework that would extend Affordable

Care Act premium subsidies for two years, Politico reported on

Monday, as President Donald Trump moves to shape congressional

negotiations ahead of looming premium hikes.

The plan, which could be announced as soon as Monday, comes as

millions of enrollees for ACA -- also known as Obamacare --

face sharp premium increases if the subsidies are allowed to

expire on December 31 with no replacement, placing fresh

attention on healthcare affordability. The plan is also expected

to add new eligibility limits, according to Politico.

Americans shopping for 2026 ACA health insurance plans are

facing a more than doubling of monthly premiums on average and

are likely to postpone signing up in hopes of a last-minute

reprieve, or walk away,

health experts say

.

The issue has forced Trump into a political balancing act:

trying to satisfy conservatives who oppose extending the credits

while addressing voter concerns over rising insurance costs

heading into an election year.

Shares of U.S. health insurers including Centene ( CNC ),

Oscar Health ( OSCR ), Molina Healthcare ( MOH ) and

UnitedHealth ( UNH ) rose in premarket trading on Monday after

reports of a possible two-year extension of ACA subsidies, a

development seen as supportive for those selling plans on the

marketplace.

Republicans remain divided over how to handle the December

deadline.

Hardline conservatives want to let the subsidies lapse,

moderates are pressing for an extension, and some lawmakers are

pushing for a broader overhaul to replace the credits. As part

of a deal to reopen the government earlier this month, Senate

Republicans agreed to give Democrats a vote on the credits in

December.

The White House did not immediately respond to a request for

comment.

The White House plan is expected to include a new income cap

for receiving ACA tax credits and a requirement for minimum

monthly premium payments, Politico reported.

One option under discussion would limit subsidies to

individuals earning up to 700% of the federal poverty level,

aligning with ideas floated by a bipartisan group of senators,

Politico reported.

(Reporting By Jarrett Renshaw; Editing by Kevin Liffey and Chizu

Nomiyama )