Government Affairs Roundup
“Your Timely Roundup of Local, State, and Federal Updates”
Chamber members:
As we are near the end of the year, I want to say thanks to all of the loyal readers of the roundup. I hope that the information continues to be of value to all of you. As always, please feel free to share your thoughts and especially stories of how any of the items impacts you and your business.
The last two editions of these emails for the year will be rather light with next Wednesday being the final before taking some time off and returning on January 7. Happy Holidays!
*Government Affairs Roundup brought to you by CITGO*
House Plans Vote on Health Care Plan Without Extended Subsidies
House GOP leaders will bring a health care package to the floor next week that pointedly excludes an extension of the expiring enhanced Affordable Care Act subsidies — a move that leaves Republicans divided as millions face steep premium hikes at year’s end.
Speaker Mike Johnson said the bill will focus only on GOP-backed reforms with “full consensus,” such as expanding Health Savings Accounts, association health plans, pharmacy benefit manager reforms, and price transparency. Leaders argue these provisions would lower premiums broadly, not just for the 22 million Americans receiving enhanced subsidies.
But Republicans remain split. Moderates and swing-district members pushed for temporary subsidy extensions to avoid what they call a “health care cliff,” with Rep. Kevin Kiley promoting a bipartisan two-year plan. Leadership offered no commitment, and conservatives opposed any extension without adding expanded Hyde Amendment abortion restrictions.
With no consensus in the House and slim chances in the Senate, the subsidies are still set to expire. The Senate will vote Thursday on competing GOP and Democratic plans, though neither is expected to pass. Meanwhile, some House members — including Reps. Brian Fitzpatrick and Hakeem Jeffries — are eyeing discharge petitions to force votes on subsidy extensions.
35 Lawmakers Push Bipartisan Health Care Plan as Premium Tax Credit Deadline Nears
With less than 30 days before enhanced Affordable Care Act Premium Tax Credits expire, a bipartisan group of 35 House members is urging congressional leaders to adopt a new short-term health care framework aimed at preventing steep premium hikes for millions of Americans.
At a news conference last week, U.S. Reps. Jen Kiggans (R-Va.) and Josh Gottheimer (D-N.J.) unveiled CommonGround 2025, a two-year proposal backed by 15 Republicans and 20 Democrats. The plan offers a temporary extension of the enhanced PTCs while laying out a path for longer-term reforms.
“We have a responsibility before the end of the year to pass a bill that will address the issue of health care costs in this country,” said Rep. Mike Lawler (R-N.Y.). “The question is, how do we deal with this in the immediate, and the long-term?”
Why the Clock Is Ticking
The premium tax credit—created by the ACA and expanded during the pandemic—subsidizes monthly premiums for Marketplace enrollees. If Congress does nothing, the credits will revert to pre-pandemic levels on Dec. 31, driving premiums sharply upward in January.
The lawmakers are asking House and Senate leadership to bring legislation based on their framework to a vote by Dec. 18. “Doing nothing is not an option,” said Rep. Juan Ciscomani (R-Ariz.). “This is a short-term way to address this emergency, and there’s longer-term policy we’re going to work on later.”
What CommonGround 2025 Would Do
Year 1:
- Begins phasing out enhanced credits for enrollees earning 600%–1000% of the federal poverty line—a response to GOP criticism that current subsidies reach well-off Americans.
Year 2:
- Opens debate on longer-term structural changes, including:
- Rolling back most $0 premium plans made possible by the enhanced credits.
- Considering Sen. Bill Cassidy’s (R-La.) idea to gradually move from expanded PTCs to personal Health Savings Accounts.
Fraud and Transparency Measures:
- Implements provisions from the Insurance Fraud Accountability Act, increasing penalties on brokers and agents engaged in deceptive enrollment practices.
- Responds to a recent Government Accountability Office report exposing systemic fraud risks in Marketplace enrollment, including instances of brokers helping fictitious applicants obtain credits.
Out-of-Pocket Cost Reductions:
- Introduces reforms targeting Pharmacy Benefit Managers, including:
- A ban on spread pricing in Medicaid.
- Separating PBM compensation from drug costs in Medicare Part D.
Despite weeks of bipartisan negotiations, the plan faces a steep uphill climb. Senate Majority Leader Chuck Schumer (D-N.Y.) announced his own competing proposal last Thursday—an extension of ACA subsidies for three years—which is widely expected to fall short in the Senate. On the House side, Speaker Mike Johnson (R-La.) has already rejected a proposal similar to CommonGround 2025 before the White House even released it.
State Pension Update
Illinois’ pension funding ratio has improved for the fourth straight year, rising to 47.8% from 46.1% last year, according to a new report from the General Assembly’s Commission on Government Forecasting and Accountability (COGFA). The ratio has inched upward since the stagnant 2010s, when it hit a low of 39% in 2019.
Despite the progress, the state’s unfunded pension liability remains largely unchanged. This year’s total is $143.5 billion, down only $200 million from 2024 — marking just the sixth time the liability has decreased since Illinois adopted its current pension funding plan in 1996. COGFA notes that unfunded liability reflects what the state would owe if all benefits were claimed at once; it doesn’t indicate the system’s ability to pay current retirees.
Pension reform continues to loom over the General Assembly, but momentum is minimal. A House committee advanced a Tier 2 reform bill in late October, though lawmakers acknowledged it would not move further. Gov. JB Pritzker said the proposal needs “a lot more work,” adding he won’t sign anything that risks reversing the 10 credit upgrades Illinois has received during his administration.
Stay well,
Mike Paone
Executive Vice President
Joliet Region Chamber of Commerce & Industry
mpaone@jolietchamber.com
815.727.5371 main
815.727.5373 direct