Health insurers are ticking higher after the Senate shot down two competing healthcare proposals just weeks before enhanced Affordable Care Act tax credits expire. Lawmakers rejected a Democratic plan to extend the subsidies and a Republican plan that would have let them lapse while shifting support toward federally funded health savings accounts.
The market reaction was clear. Major ACA Marketplace players like Oscar Health $OSCR ( ▲ 0.41% ) , UnitedHealthcare $UNH ( ▲ 0.38% ) , Molina Healthcare $MOH ( ▲ 0.49% ) , Elevance Health $ELV ( ▼ 1.16% ) , and Centene $CNC ( ▲ 0.38% ) moved higher after the vote. Investors had already braced for the financial hit from losing ACA subsidies, but the GOP plan’s move toward HSAs introduced a fresh risk that is now off the table.
The ACA tax credits, originally created during the 2021 COVID relief package, fueled record enrollment and helped offset rising insurance costs. Their expiration on December 31 comes at a difficult time, with KFF estimating that Marketplace premiums could double next year.