Trump Administration Denies Two-Year Extension of Obamacare Subsidies

The Trump administration refutes claims of a two-year extension for Obamacare subsidies, with the expiration approaching and sparking healthcare affordability concerns. Millions could face sharp premium increases, while insurers adjust amid uncertainty. The subsidy extension debate recently led to a federal government shutdown.

The Trump administration clarified on Tuesday that it is not considering a two-year extension of subsidies under the Affordable Care Act (ACA), commonly known as Obamacare. This comes amid concerns about rising premium costs if subsidies expire without a replacement.

White House spokeswoman Karoline Leavitt dismissed reports suggesting a planned extension as 'fake news,' emphasizing ongoing discussions involving President Trump, administration officials, lawmakers, and private sector experts.

Uncertainty over premium hikes and potential declines in 2026 enrollments has affected health insurers, with Oscar Health shares down nearly 4% and Centene falling over 2%. The subsidy debate also contributed to a recent federal government shutdown.

(With inputs from agencies.)