By Jarrett Renshaw
(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, Oscar Health, Molina Healthcare and UnitedHealth 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 )
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