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Sen. Dan Sullivan speaks about the One Big Beautiful Bill Act during the Anchorage Chamber of Commerce’s \u201cMake It Monday\u201d luncheon at the Dena\u2019ina Convention Center on Monday. (Marc Lester \/ ADN) <\/p>\nSen. Dan Sullivan speaks about the One Big Beautiful Bill Act during the Anchorage Chamber of Commerce’s \u201cMake It Monday\u201d luncheon at the Dena\u2019ina Convention Center on Monday. (Marc Lester \/ ADN) <\/p>\n
Alaska\u2019s U.S. Sen. Dan Sullivan said Monday he is working on a bill seeking a two-year extension of health insurance subsidies that will otherwise expire at the end of the year.<\/p>\n
The subsidies are used by many of the roughly 25,000 Alaskans who purchase insurance on the federal exchange through the Affordable Care Act. If allowed to expire, many would see premiums double or triple<\/a> \u2014 increasing health care costs by tens of thousands of dollars for some families and putting health insurance out of reach for others. <\/p>\n Sullivan, a Republican, has previously signaled his support for extending the enhanced premium tax credits, which were adopted with support from congressional Democrats in 2022. But he did not push for the tax credits to be extended as part of a deal to fund the government<\/a> and end what became earlier this month the longest government shutdown in U.S. history.<\/p>\n To appease Democrats, the deal to fund the government included a promise for the Senate to vote on a proposal to extend the subsidies by mid-December.<\/p>\n Now, with the shutdown over, Sullivan said bipartisan talks are underway to temporarily extend the subsidies and introduce other health care reforms.<\/p>\n \u201cWe\u2019re very focused. I\u2019m trying to work with both sides of the aisle and the White House to get a resolution to this,\u201d Sullivan said. <\/p>\n Alaska\u2019s U.S. Sen. Lisa Murkowski has also spoken in favor<\/a> of extending the tax credits.<\/p>\n Other GOP senators have been considering a broader set of changes<\/a> to the Affordable Care Act, including replacing premium subsidies with personal health savings accounts. Sullivan said his focus has been primarily on a short-term extension of the subsidies \u201cto enable people to prepare\u201d for changes in how much health insurance will cost and how it will be paid for. <\/p>\n \u201cWhat my bill is focused on is tapering the cliff,\u201d Sullivan said after addressing the Anchorage Chamber of Commerce on Monday. <\/p>\n Though Senate Democrats have been in vehement support of extending the enhanced premium tax credits \u2014 a goal that in large part drove the government shutdown \u2014 Sullivan said \u201cit\u2019s not clear\u201d where Democratic leadership stands on the health care proposals that Republicans are backing.<\/p>\n Sullivan said he was hoping that President Donald Trump would get behind the idea of extending the tax credits to bolster support for the move. Trump had previously indicated<\/a> he did not support the extension. However, Sullivan\u2019s remarks Monday came as the White House indicated an openness<\/a> to extending the subsidies.<\/p>\n Sullivan\u2019s goal of extending the tax credits by two years raises questions about whether such a move would set up a new \u201ccliff\u201d in 2027, bypassing the political peril of the 2026 midterm elections, when Sullivan and other members of Congress will face voters, but not bringing long-term relief to those who rely on the subsidies to afford insurance. <\/p>\n Sullivan said the answer to that lies in \u201cbroader reforms,\u201d including transitioning away from tax subsidies to tax-advantaged health savings accounts, which could be used to cover the cost of premium or co-pays.<\/p>\n Alaskans who rely on plans purchased through the Affordable Care Act say that the health savings accounts would change their calculus, but not necessarily solve the problem of lowering the cost of health care.<\/p>\n \u201cIf his concept is to give us money directly that we can then use to go and purchase a health care system, why not just take the final extra step and put everybody on Medicare for all? It\u2019s just adding more and more layers to the convolution,\u201d said Anchorage business owner Mark Robokoff in an interview earlier this month. Robokoff relies on enhanced premium tax credits to afford insurance and could see a tripling in his premium cost if the subsidies expire.<\/p>\n![\"\"](\"https:\/\/www.newsbeep.com\/us\/wp-content\/uploads\/2025\/11\/LB22AEBCINHHDMXS66EQPQXKFQ.JPG\")
Sen. Dan Sullivan speaks with lawmakers and other audience members after giving a speech to the Anchorage Chamber of Commerce \u201cMake It Monday\u201d luncheon at the Dena\u2019ina Convention Center on Monday. (Marc Lester \/ ADN) <\/p>\n