President Trump as soon as this week is due to outline a new initiative that calls for a short-term extension of Affordable Care Act subsidies in exchange for new eligibility limits and other changes.

Why it matters: Mounting concern about medical costs and the looming expiration of enhanced ACA tax credits could amp up affordability concerns and give Democrats a potent weapon heading into an election year. • Democrats made ACA financial assistance a centerpiece of the recent government shutdown fight.

What we're hearing: Trump plans to propose a framework that would address spiking premiums by extending for two years the enhanced ACA tax credits, which are due to expire at the end of the year, according to sources familiar, speaking anonymously because of the sensitivity of the talks.

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