Congress races to avert Obamacare premium spike as subsidy deadline nears

New proposals are emerging on Capitol Hill as lawmakers scramble to prevent healthcare costs from surging for millions of Americans ahead of a looming deadline.

(CNN)- New proposals are emerging on Capitol Hill as lawmakers scramble to prevent healthcare costs from surging for millions of Americans ahead of a looming deadline.

Pandemic-era Affordable Care Act subsidies are set to expire while Congress heads into its holiday recess at the end of this week, raising concerns that insurance premiums could sharply increase in the new year.

“You’re going to anticipate the enormous sticker shock of your premiums going up,” said Roben Farzad, host of Full Disclosure.

Party leaders remain at an impasse. Democrats are pushing for a clean, three-year extension of the subsidies, while House Republicans are seeking a floor vote this week on a plan that would allow them to expire.

Republicans argue their approach focuses on alternative solutions, including expanded access to association health plans and new transparency requirements for pharmacy benefit managers.

“This proposal focuses on expanding the availability of association health plans, allowing employers to really band together to purchase coverage,” said political reporter Camila DeChalus. “It also includes new transparency requirements for pharmacy benefit managers.”

Amid the standoff, a bipartisan group of centrist Republicans and Democrats is working to craft a compromise in both chambers. In the House, lawmakers are taking steps to force a floor vote on a proposal that would extend the subsidies but impose stricter income caps and add new fraud prevention measures.

“It’s hundreds of dollars a month for many Americans throughout the country,” said Rep. Nick LaLota, a Republican backing the alternative House plan. “We have to do right by those people.”

In the Senate, a separate bipartisan group met late Tuesday to explore extending the subsidies with reforms. Senators involved say they hope to announce their plan before lawmakers leave for the holiday break.

“I think there’s a deal that could be done,” said Sen. Bill Cassidy, who attended the meeting.

With time running short, pressure is mounting on Congress to reach an agreement before Americans see higher healthcare costs in the year ahead.