Republicans and Democrats miles apart on Obamacare subsidy fixes ahead of skyrocketing premiums
2025-12-12 15:53:38
Senate votes against competing health care proposals
Political strategist Katie Zakaria breaks down the Senate’s stalled health care proposals, the ACA tax credit implications and how Democrats can leverage shutdown politics to take control of the 2026 midterm elections.
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There is still a desire to resolve the looming health care crisis after competing votes in the Senate over partisan Obamacare reforms broke down Thursday, but both sides remain miles away from finding a compromise.
The booster Obamacare subsidies It is scheduled to expire at the end of the year, and Congress is preparing to leave Washington, D.C., at the end of next week and into the new year. There are several options on the table, including several Senate Republican proposals or simply moving forward with extending benefits in the short term.
But lawmakers need to decide exactly what they want to do, and what would pass the 60-vote threshold first.
Obama’s law reform fails Senate Democrats as Senate looks for health care cliff

Obamacare reforms have failed for both Republicans and Democrats, but lawmakers are hoping for a solution in the aftermath. Senate Minority Leader Chuck Schumer, of New York, attributed the impending crisis to the Republican Party, while Senate Majority Leader John Thune expressed hope that enough Democrats would join Republicans in reforms. (Graeme Sloan/Bloomberg via Getty Images; Tom Williams/CQ-Roll Call, Inc via Getty Images)
Senate Majority Leader John Thune said: “I think the question is: Do Democrats, after they finish voting on the letters, want to have a real conversation about this?” “Because they don’t seem to have a real high level of interest in repairs, but there are some who do. I don’t know if there are enough, but I think we’ll get an idea of that here very soon.”
Thune echoed what many Senate Republicans believe: Senate Democrats’ three-year extension of the benefits was never supposed to work and was merely a political messaging exercise.
Still, four Republicans in the Senate She crossed the aisle to vote on the Democrats’ plan. Sen. Lisa Murkowski, R-Alaska, said she voted for both proposals not because they were exactly what she wanted, but because she wanted to get the ball rolling on a solution.
“Sometimes in the Senate we have to get clear on what we can’t do first before we can get to what we need to do,” she said. “Today was the first step in that process to prove what we can’t do now. Let’s get on with it and fix it.”
Senate Democrats block GOP’s HSA plan as Obamacare deadline approaches

Sen. Lisa Murkowski, R-Alaska, speaks to members of the media after voting outside the U.S. Capitol in Washington, October 3, 2025. (Graeme Sloan/Getty Images)
Conversely, the GOP’s first attempt would not have been very popular with Senate Democrats either. Some in the Senate are considering extending benefits in the short term, whether from six months to a year, but that idea does not address the many reforms Senate Republicans have called for to support them.
“Discussions will continue,” Wyoming Senate Majority Whip John Barrasso told Fox News Digital. “Both parties will find a solution to actually lower the cost of care, put patients in charge, and eliminate the waste, fraud, abuse, and corruption that has pervaded Obamacare.”
Whatever happens next, it will likely be the product of public negotiations, rather than top-level decisions between Thune and the Senate Minority Leader. Chuck SchumerD.N.Y.
But there is a growing feeling that Pres Donald Trump He should be more involved and dictate exactly what he wants to do. Trump has previously indicated he wants to move forward with health savings accounts (HSAs), but in recent weeks he has largely stayed away from the Obamacare turmoil in the Senate.
When asked how lawmakers could get out of the health care crisis, Sen. Chris Murphy, D-Conn., told Fox News Digital: “We don’t.”
“Not until Donald Trump decides to get out of it,” Murphy said. “He’s the President of the United States, and his party controls the House and Senate, so the only way to save people from… Health care disasters “For Donald Trump, the leader of the Republican Party, it is up to him to decide to fix this.”

Sen. Chris Murphy, D-Conn., believes the looming health care crisis will not be resolved unless President Donald Trump gets more involved. (Bill Clark/CQ-Roll Call, Inc via Getty Images)
Republicans still have several options on the table, including a plan by Sen. Roger Marshall, R-Kan., that combines a benefit extension with HSAs and reforms, and a plan from Sens. Susan Collins, R-Maine, and Bernie Moreno, R-Ohio, that would extend appropriations for two years, among others.
There’s also the possibility that the health care fight will continue into next year and be subject to the partisan budget reconciliation process, which Republicans used earlier this year to pass Trump’s agenda.
While that is an option, many in the Supreme Council acknowledge that the best way forward is to work with the other side of the aisle.
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“I would rather do it on a bipartisan basis, because that’s how Congress is supposed to work,” Republican Los Angeles Sen. Bill Cassidy told Fox News Digital. “But if Democrats are intent on holding people to either higher premiums and/or a $6,000 deductible, then we have to do something. So it’s not good for the American people.”
While there are lawmakers hoping the failed votes will serve as a stepping stone forward, rather than a dead end, toward addressing the Obamacare issue, Schumer suggested it was Republicans’ fault that the subsidies were likely to end.
“This is their crisis now, and they will have to respond to it,” he said.
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