Dr. Oz says ‘there are discussions’ on extending Affordable Care Act subsidies

In an interview Sunday on CNN State of the UnionHe was asked whether there was talk of extending it, even in the short term, given that insurance costs would double if the new year began without support.

He answered: “There are discussions about extending support, if we deal with the fraud, waste, and exploitation that are paralyzing the system now.”

There are also ways to put money “in the pockets of Americans,” Oz added, referring to President Donald Trump’s earlier suggestion that direct payments could replace the tax credits that currently offset the cost of insurance in the ACA’s markets.

He also said Trump’s tax and spending package initially included provisions for cost-saving tools that would have lowered insurance premiums by 10%, but Democrats pushed for them to be removed.

“We have already put forward these ideas,” Oz said, stressing that he is looking for ways to make the system sustainable for decades.

The enhanced ACA subsidies, enacted during the pandemic, were the main point of contention during the government shutdown as Democrats pushed for them, but failed.

Meanwhile, this month’s off-year election, which delivered stunning losses for Republicans, has brought the issue of affordability front and center.

Trump has already rolled back some of his tariffs to help lower grocery prices, and efforts to come up with ways to reduce health care costs are growing.

House Republicans have begun working on their own package aimed at cutting costs, though extending support for the ACA is unlikely, sources told CNN last week.

Meanwhile, the report also said that the White House is stepping up its push to develop a new health care plan that would reform the Affordable Care Act, which Trump tried unsuccessfully to repeal and replace in his first term.

On Sunday, Oz said “there are many ideas on the table,” including some that would replace the Affordable Care Act and some that would not replace the Affordable Care Act. He highlighted the role of reinsurance and prescription drug pricing in reducing costs.

Such efforts are likely to take months of legislative work. But within weeks, consumers of ACA insurance plans must start paying premiums that skyrocket.

“I promise you the president is very focused on this,” Oz said. “That’s the main thing I talk to him about. congress is also interested in this. We have to find solutions that not only work at the end of this year, but work for years to come.”

While Democrats have been calling for extending Affordable Care Act benefits, allowing them to expire would disproportionately affect Republican states, especially in the South.

Of the 10 states with the highest percentage of residents receiving benefits, eight are in the South and voted for Trump last year. They include Florida, Georgia, Texas, Mississippi, South Carolina, Alabama, Tennessee, and North Carolina. The other two states in the top 10, Utah and Wyoming, are also Republican states.

The Congressional Budget Office has estimated that extending ACA benefits would cost $35 billion annually. Meanwhile, the Congressional Budget Office said allowing it to expire would result in about 4 million people becoming uninsured by 2034.

In addition to the financial costs, there may be political costs if voters see their health insurance bill rise.

“While a relatively small percentage of the national population gets its coverage through the ACA marketplaces, in some areas, the number of ACA enrollees may be enough to swing a close election,” KFF said last month.