Democrats warn of ACA premium spikes as Republicans blamed for costs

Democrats are accusing Republicans of wanting to inflate Affordable Care Act premiums amid the ongoing federal government shutdown debate as critics argue it’s proof that the program was not sustainable to begin with. 

One reason for the shutdown centers around the “enhanced” tax credits for Affordable Care Act premiums as the subsidies, which started in 2021, are set to end this year, according to KFF.

“If you live in these states, your ACA premiums are about to jump: SD – Up 235% LA – Up 150% WV – Up 387% WY – Up 382% TN – Up 320% MS – Up 314% AK – Up 346%,” Sen. Tammy Duckworth, D-Ill., posted on X.

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“Republicans are fighting to make sure this happens to their own constituents,” she added.

“If Congress doesn’t extend ACA enhanced premium tax credits, 20 million Americans will see a dramatic rise in premium costs, and another 4 million people will lose their coverage completely,” Sen. Jeanne Shaheen, D-New Hampshire, posted on X. 

“My Republican colleagues need to come to the table so that we can prevent this disaster,” she added.

However, subsidies being used to lower costs sparks concerns about the longevity of the Obama-era policy.

Brian Blase, the president of the Paragon Health Institute and a former advisor on the White House’s National Economic Council, countered a claim made in a post from Sen. Mark Warner, D-Va., that “Republicans are intentionally skyrocketing your premiums.”

“1. Premiums went up because of the ACA 2. Large subsidies were put in place to offset enrollees’ costs. 3. During COVID, there were subsidy add-ons. Democrats scheduled them to expire after 2025. 4. The original large subsidies will still be in place,” Blase explained.

“The premium increase will hit regardless of what Congress does. That is an unfortunate feature of how Obamacare is working. The question is the share that should be paid by taxpayers,” he continued in another X post. “Pouring more subsidies on insurers entrenches the status quo & means higher premiums & prices.”

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“Subsidizing phantom enrollees, people with high incomes, people enrolled in several programs, outright fraud, and insurance companies, thereby raising the costs for *everyone* to cover the fact that every predicted problem with Obamacare was realized,” conservative commentator Mary Katharine Ham posted.

The government shutdown began Wednesday at midnight and a GOP-backed attempt to temporarily reopen the government failed in the Senate later in the day. 

“Democrats are fighting to extend expiring COVID-era Obamacare subsidies they passed under Joe Biden with zero Republican support,” Sen. Mike Lee, R-Utah, posted in an X thread on Wednesday. “These subsidies are responsible for tens of billions in improper and fraudulent payments.”

“The pool of people eligible for Obamacare subsidies vastly increased, with insurance companies being the ultimate beneficiaries. Dishonest brokers were incentivized to recruit—or invent—as many people as possible, each new signup bringing with it thousands in taxpayer dollars,” the senator continued.

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Vice President JD Vance on Wednesday told “Fox and Friends” that he will work with Democrats on extending insurance subsidies for Obamacare “after they’ve reopened the government.”

 “You can’t reward this exercise in hostage taking, which is what we would be doing if we allow the government opening to be conditional on the Democrats’ policy disagreement,” Vance said.

“That premium support program doesn’t even expire until next year. So why are you shutting down the government on October 1 because of a program that doesn’t even expire for another few months,” he continued. “Let’s talk about it, let’s negotiate, let’s do what you do in Washington, D.C.”

“The government shutdown has occurred because Senator Chuck Schumer is holding the funding process hostage. The continuing resolution would have allowed the government to function while we finish the appropriations process in a bipartisan way,” Sen. Roger Wicker, R-Miss., posted on Wednesday. “The longer Senator Schumer plays games, the greater the damage to national security, service members, and veterans. I urge my Democrat colleagues to adopt the House-passed bill, which would immediately reopen the government.”