WASHINGTON, D.C. – Having failed to rein in rising premium costs that are harming American families, Democrats are now trying to double down on the same policies that are contributing to the problem. As even the Washington Post has noted: “The real problem is that the Affordable Care Act was never actually affordable.”

Ways and Means Chairman Jason Smith (MO-08) said: 

“Democrats are demanding subsidies that not only fail to address rising prices, but also reduce Americans’ options and incentivize greater fraud and abuse. Included in our tax cuts for working families were reforms that eliminated widespread fraudulent and duplicate health coverage enrollment – things that no taxpayer should have to pay for. Even the Congressional Budget Office found that Republican reforms will lower premiums.”

FACT: Democrats have failed to stop premium costs from rising as they have every year – even with the “Biden COVID Credits.”

• Benchmark premiums for Obamacare marketplace plans have increased 80 percent since 2014.
• Premiums are already slated to go up next year by 20 percent. Less than 4 percent of next year’s expected increase is attributable to expiration of the enhanced Covid-era premium tax credits.
• Americans are paying more but getting less access, having their claims denied, and unable to see their doctor while insurers profit from taxpayer subsidies. By contrast, individual market premiums declined under President Trump, while there were significant increases under Presidents Obama and Biden.
• Even the Washington Post has noted: “The real problem is that the Affordable Care Act was never actually affordable. President Barack Obama’s signature achievement allowed people to buy insurance on marketplaces with subsidies based on their income. The architects of the program assumed that risk pools would be bigger than they turned out to be. As a result, policies cost more than expected.”

FACT: Millions of working Americans would see their coverage options reduced if the “Biden Covid Credits” are extended.

• A permanent extension of expanded “Biden Covid Credits” would result in 3.5 million individuals being forced off their job-based coverage.

FACT: Republicans’ working families tax cuts eliminated widespread fraudulent and duplicate enrollment – Democrats are using misleading statistics to spin it as Americans losing coverage.

• A Paragon Health Institute analysis estimates that 6.4 million individuals are improperly enrolled in Obamacare – that’s 2.6 million more than the total coverage losses Democrats claim will occur due to “Biden Covid Credit” expiration.
• An analysis by the Centers for Medicare & Medicaid Services (CMS) found that 2.8 million people are dually enrolled in either a subsidized Obamacare plan and a Medicaid plan, or multiple state Medicaid programs. This resulted in excess costs to federal taxpayers of $14 billion annually in 2024.
• CMS also found that 12 million enrollees never filed a medical claim in 2024 (up from 3.5 million enrollees in 2021) – raising questions about how many enrollees even know they are enrolled in Obamacare plans because “Biden Covid Credits” require zero skin in the game for enrollees.
• In recent analysis, the Congressional Budget Office (CBO) acknowledged that as many as 2.3 million individuals are improperly enrolled in subsidized Obamacare plans in 2025, echoing other research.
• GAO and CMS have both raised concerns about “identity and eligibility verification” being weakened by Biden-era rulemaking.

Republican reforms are projected to reduce premiums for Americans

• CBO recently announced that Republican reforms contained in the working families tax cuts legislation enacted earlier this year would actually lower premiums for Americans.