Collins, Moreno unveil Obamacare plan as Republicans search for solution to expiring subsidies

A Senate Republican duo unveiled their vision for expiring Obamacare premium subsidies as the Senate hurtles toward a vote on the credits at the end of this week.

Sens. Susan Collins, R-Maine, and Bernie Moreno, R-Ohio, announced their plan to tackle the subsidies, which are set to expire at the end of this year. Their proposal, made public on Monday, would extend the subsidies for two years.

The upper chamber is set to vote on legislation dealing with the expiring subsidies on Thursday, but so far only Senate Democrats have united behind a proposal from Senate Minority Leader Chuck Schumer, D-N.Y., that would extend the credits for three years.

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Sens. Susan Collins, R-Maine, and Bernie Moreno, R-Ohio, announced their plan to extend expiring Obamacare subsidies by two years, include income caps and end zero-cost premiums. (Anna Moneymaker/Getty Images; Andrew Harnik/Getty Images)

Schumer’s plan is likely dead on arrival, given that it lacks any of the reforms to the subsidies demanded by the GOP. And Republicans are mulling several options, but have so far not picked legislation to form up behind and put on the floor in a possible side-by-side vote.

Moreno and Collins hope that their legislation, which would also put an income cap onto the subsidies for households making up to $200,000 and eliminate zero-cost premiums as a fraud preventive measure by requiring a $25 minimum monthly payment, gets a shot.

Moreno argued that former President Barack Obama and the Democratic Party “created this disaster, lining the pockets of massive insurance companies while healthcare costs for everyday Americans skyrocketed.”

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Senate Minority Leader Chuck Schumer, D-N.Y., speaks at a press conference with other members of Senate Democratic leadership following a policy luncheon at the U.S. Capitol in Washington, Oct. 15, 2025. (Nathan Posner/Anadolu via Getty Images)

“But I refuse to let the American people pay the price for the Democrats’ incompetence,” he said in a statement. “I am willing to work with anyone to finally bring down costs for all Americans and hope my colleagues across the aisle will commit to doing the same.”

Collins said that lawmakers needed to “pursue practical solutions that increase affordability without creating sudden disruptions in coverage,” with the expiration deadline looming. Republicans are divided on whether they want to actually extend the subsidies or allow them to sunset and be dealt with early next year.

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President Donald Trump holds a chart on household income in the Oval Office of the White House in Washington, Aug. 7, 2025.  (Yuri Gripas/Abaca/Bloomberg via Getty Images)

“This bill would help prevent unaffordable increases in health insurance premium costs for many families by extending the [Obamacare] enhanced premium tax credits for two years and putting a reasonable income cap on these subsidies to ensure they are going to the individuals who need them,” Collins said in a statement.

Their proposal joins the ranks of public ideas and legislation floated by Republicans, but strays from the desire many in the GOP have to convert the money that flows into the subsidies directly to Americans through Health Savings Accounts (HSAs).

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President Donald Trump has publicly backed converting the premiums to HSAs, but even with his support, Republicans have not nailed down a legislative move that could make it to the floor. 

It’s also unclear if Republicans will line up behind their plan, given that it extends the subsidies without additional action on taxpayer funding flowing to abortion — a key sticking point in bipartisan negotiations on the credits — and lacks the inclusion of HSAs.