GOP Draws Red Line: Moreno’s Final Offer Puts Democrats on the Clock

Paul Riverbank, 1/29/2026 As pandemic-era ACA subsidies lapse, families face soaring premiums while partisan gridlock stalls relief. Senator Moreno’s GOP-backed plan offers renewed, but limited, assistance—with stricter eligibility and enforcement—leaving Democrats to decide the fate of millions caught between rising costs and political brinkmanship.

Senator Bernie Moreno, representing Ohio and leading the Republican negotiating table on this issue, put it plainly: his party has given its “best and final” offer. The proposal, a one-year extension for the enhanced tax credits that once made ACA plans more affordable, doesn’t arrive without conditions. Subsidies would reach only those earning up to seven times the federal poverty level, leaving out higher-income households that, during the pandemic, qualified for help for the first time. Moreno seemed adamant—this deal, as he puts it, “is the maximum we can sell our conference.”

It’s a loaded moment. Look no further than California’s health exchange, where officials have tried to prop up families as the safety net receded. Jessica Altman, who oversees Covered California, says the shock is only beginning to register. Preliminary data showed most enrollees received some financial aid, but a significant fraction are now confronting premiums that stretch family budgets. For a Los Angeles family of four earning $90,000, staying covered on a standard “Silver” plan just got $3,400 pricier per year. That’s real money, and it’s coming due.

Moreno’s proposal would also bring a few other twists: everyone would pay at least $5 a month, even for the most subsidized plans. He suggests cracking down on potential fraud, barring those without legal residency from benefiting, and extending open enrollment to give consumers more time. There’s also an audit piece to check that states comply with longstanding bans on federal abortion funding.

Predictably, the question of who should get help is stirring passions. Moreno’s camp argues that generous subsidies shouldn’t extend to “people that make a lot of money,” drawing a sharper line than pandemic expansions did. For many Americans—freelancers, small business owners, people who retired just shy of Medicare eligibility—the sense of rug-pulling is palpable. California tried to dampen the pain by spending nearly $200 million of its own, cushioning costs for those with lower incomes, but it wasn’t enough to keep everyone whole.

From the Democratic side, there are signals of movement but not yet consensus. Senator Angus King, a key centrist, sounded hopeful that terms could be set once the ongoing budget scrum passes, with a “solid bipartisan group” pressing for a deal. That said, the pressure is mounting. Healthcare gobbles up roughly a fifth of the American economy these days—up drastically from the 1960s—and the monthly cost of coverage reflects that inexorable climb.

Moreno’s team frames the issue as a straightforward choice for Democrats: accept targeted relief paired with stricter eligibility, or hold out and risk leaving families in the lurch altogether. “If Democrats say, ‘this is impossible, there’s no way we can sell that,’ then it’s over,” Moreno remarked.

Meanwhile, the people affected—often too busy working or raising families to monitor every twist in the Capitol—watch their premiums change and wonder what comes next. While some might drop coverage as the bottom line rises, others will dig deeper to stay insured, even as the subsidies they relied on recede. The next move is in Democrats’ hands, but for now, the standoff feels less like a policy debate and more like a waiting game, with families stuck uncomfortably in the middle.

When the government dialed back its pandemic-era boost to health insurance subsidies, the pinch landed hard for many American families—especially the ones sandwiched just above the poverty line. As lawmakers square off and point fingers in Washington, bills are arriving in mailboxes, and for a growing cohort, they’re harder to pay than ever.Senator Bernie Moreno, representing Ohio and leading the Republican negotiating table on this issue, put it plainly: his party has given its “best and final” offer. The proposal, a one-year extension for the enhanced tax credits that once made ACA plans more affordable, doesn’t arrive without conditions. Subsidies would reach only those earning up to seven times the federal poverty level, leaving out higher-income households that, during the pandemic, qualified for help for the first time. Moreno seemed adamant—this deal, as he puts it, “is the maximum we can sell our conference.”It’s a loaded moment. Look no further than California’s health exchange, where officials have tried to prop up families as the safety net receded. Jessica Altman, who oversees Covered California, says the shock is only beginning to register. Preliminary data showed most enrollees received some financial aid, but a significant fraction are now confronting premiums that stretch family budgets. For a Los Angeles family of four earning $90,000, staying covered on a standard “Silver” plan just got $3,400 pricier per year. That’s real money, and it’s coming due.Moreno’s proposal would also bring a few other twists: everyone would pay at least $5 a month, even for the most subsidized plans. He suggests cracking down on potential fraud, barring those without legal residency from benefiting, and extending open enrollment to give consumers more time. There’s also an audit piece to check that states comply with longstanding bans on federal abortion funding.Predictably, the question of who should get help is stirring passions. Moreno’s camp argues that generous subsidies shouldn’t extend to “people that make a lot of money,” drawing a sharper line than pandemic expansions did. For many Americans—freelancers, small business owners, people who retired just shy of Medicare eligibility—the sense of rug-pulling is palpable. California tried to dampen the pain by spending nearly $200 million of its own, cushioning costs for those with lower incomes, but it wasn’t enough to keep everyone whole.From the Democratic side, there are signals of movement but not yet consensus. Senator Angus King, a key centrist, sounded hopeful that terms could be set once the ongoing budget scrum passes, with a “solid bipartisan group” pressing for a deal. That said, the pressure is mounting. Healthcare gobbles up roughly a fifth of the American economy these days—up drastically from the 1960s—and the monthly cost of coverage reflects that inexorable climb.Moreno’s team frames the issue as a straightforward choice for Democrats: accept targeted relief paired with stricter eligibility, or hold out and risk leaving families in the lurch altogether. “If Democrats say, ‘this is impossible, there’s no way we can sell that,’ then it’s over,” Moreno remarked.Meanwhile, the people affected—often too busy working or raising families to monitor every twist in the Capitol—watch their premiums change and wonder what comes next. While some might drop coverage as the bottom line rises, others will dig deeper to stay insured, even as the subsidies they relied on recede. The next move is in Democrats’ hands, but for now, the standoff feels less like a policy debate and more like a waiting game, with families stuck uncomfortably in the middle.