ANCHORAGE, Alaska (KTUU) – Sen. Dan Sullivan, R-Alaska, told Anchorage business leaders and state representatives Monday he wants to “taper down” federal healthcare subsidies for nearly 28,000 Alaskans, fresh off the fight Senate Democrats waged to sustain the Affordable Care Act, also known as Obamacare, credits, which expire next year.
“I’ve been working with … senators, the White House on how you would look to reform not only the premium tax credits (and) taper them so you don’t have this giant cliff that is really going to hurt people,” he said, answering a question from the audience during the Anchorage Chamber of Commerce’s “Make it Monday” forum, “but also do something that we think, and most people think makes a lot of sense, which is reform the system.”
Sullivan’s answer to one person’s question came at the end of his presentation over what he characterized as the benefits of the Big Beautiful Bill in Alaska, where he praised additional military funding, work requirements for Medicaid and SNAP benefits, and projected $200 million to $300 million per year from the rural health transformation fund.
The enhanced premium tax credits, which began during the pandemic and were extended in 2022, are set to expire at the beginning of 2026 if Congress does not extend them again. The subsidies were at the core of the recent government shutdown, with Senate Democrats fighting for their extension. Alaska’s entire congressional delegation has publicly said they support extending the subsidies.
Sullivan’s position comes amid uncertainty from President Donald Trump, who has not clearly stated his support for continuing the subsidies. Trump planned to release a new health policy framework, according to Politico, including a two-year extension of Obamacare subsidies, but his recent social media statements suggest a different approach.
“The broader reforms are to take that money, not for the insurance companies, get it to Alaskans directly – let them choose through what we call health savings accounts on where to spend that money,” Sullivan said in an interview following the event. “To get there, I think you need a two-year extension with reforms.”
Protesters voice healthcare concerns
Outside the Dena’ina Center, several protesters stood in 20-degree temperatures carrying signs with slogans like “Healthcare and Housing are needs, not privileges,” and “Dan, your votes are hurting Alaskans.”
“I would like to see an actual solution where people aren’t going bankrupt over getting sick or having to choose between paying their healthcare bill or putting food on their table,” said Courtney Moore, one of the protesters, speaking on the affordability of healthcare in Alaska.
Moore, and several other protesters said Ambler Road construction, healthcare affordability, and Sullivan’s lack of town halls were their reasons for opposing the senator’s visit.
Sullivan did not address most of those topics, as his chamber of commerce address focused primarily on the Big Beautiful Bill Act.
National healthcare reform debate
President Donald Trump hasn’t been clear about his support for the tax credits.
“THE ONLY HEALTHCARE I WILL SUPPORT OR APPROVE IS SENDING THE MONEY DIRECTLY BACK TO THE PEOPLE, WITH NOTHING GOING TO THE BIG, FAT, RICH INSURANCE COMPANIES, WHO HAVE MADE $TRILLIONS, AND RIPPED OFF AMERICA LONG ENOUGH,” Trump said on social media last week. “Congress, do not waste your time and energy on anything else.”
Both Sullivan and Sen. Lisa Murkowski, R-Alaska, have expressed interest in alternatives to the current ACA structure, particularly an idea largely championed by Sen. Bill Cassidy, R-Louisiana.
Cassidy proposes individuals receive credits sent “directly to patients and empower them to manage their own health care decisions,” according to a press release from his office.
“The President is proposing that we take the $26 billion that would be going to insurance companies … (and) give it directly to the American people in an account in which 100% of the money is used for them to purchase health care on their own terms,” Cassidy told CBS’ “Face the Nation with Margaret Brennan” Sunday.
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