Sen. Dan Sullivan is actively working on a bill to extend health care subsidies for two years, preventing a potential crisis for Alaska’s residents. The subsidies, crucial for approximately 25,000 Alaskans, would otherwise lead to skyrocketing premiums, causing significant financial strain for families and making health insurance unaffordable. Sullivan, a Republican, has previously expressed support for extending enhanced premium tax credits, which were introduced with Democratic backing in 2022. However, he did not prioritize this during the recent government shutdown, which was the longest in U.S. history. To appease Democrats, a deal was made to fund the government, including a promise to vote on extending the subsidies by mid-December. Now, with the shutdown over, Sullivan is engaging in bipartisan talks to temporarily extend the subsidies and introduce other healthcare reforms. Alaska’s Sen. Lisa Murkowski has also endorsed extending the tax credits. While Sullivan’s bill focuses on a short-term extension, it raises questions about future challenges. The goal is to transition from tax subsidies to tax-advantaged health savings accounts, but this may not significantly lower healthcare costs. Critics argue that this approach adds complexity without addressing the root issue of affordability. The Affordable Care Act has had mixed results in Alaska, with insurance premiums rising despite a decrease in the percentage of uninsured residents. Sullivan’s proposed reforms include tightening income requirements for tax credits, mandating monthly premiums for all enrollees, and prohibiting undocumented migrants from using Affordable Care Act plans. These measures have sparked protests, with critics demanding universal healthcare and an end to the profit-making practices of insurance companies.