Oct
5
Are the Expiring, Biden-Era Health Care Subsidies Truly Essential?
Assuming you have been listening to or reading at least some of the news headlines these past several days, you are aware of the latest budgetary battle in Congress to keep the federal government funded and open for business. One of the things the Democrats are insisting on is that certain Biden-era health care subsidies be further extended (perhaps even permanently) rather than allowed to expire.
Nina Owcharenko Schaefer, director of The Heritage Foundation’s Center for Health and Welfare Policy, provided a very helpful article discussing those subsidies and why — contrary to Democrat claims — they are far from being “essential”. The information is great and the article short enough that I could have quoted the whole thing. But, I didn’t feel that was fair (and probably not legal), so I’ll just give you her five points and a brief quote from each.
1) The Subsidies Are Remnants of COVID-19 Response
“Most other COVID-19 relief responses, including unemployment benefits, food stamps, student loans, and Medicaid, have already expired. The calls to make these subsidies permanent prove that the Left’s ultimate goal wasn’t COVID-19 relief….”
2) The Number of People Drawing a Subsidy Has Nearly Doubled
“The CBO estimates that extending these subsidies permanently would result in a 3 million drop in employer-based coverage, a $380 billion increase in cost to taxpayers over the next 10 years, and another 6.9 million individuals in Obamacare exchanges….”
3) COVID-19 Subsidies Have Amplified Fraud in the Program
“[M]any individuals were enrolled in subsidized coverage without their knowledge or had their subsidized coverage changed without their knowledge. Meanwhile, an estimated 6.4 million people were improperly designated as [eligible for] zero-premium coverage at a cost of over $27 billion in taxpayer dollars for 2025 alone.”
4) Subsidies Won’t Disappear Entirely Just Because COVID-19-era Subsidies Aren’t Extended
“Under a return to Obamacare’s original standard, taxpayers will still pay 80% to 90% of premiums for low-income enrollees.”
5) These Subsidies Ignore the Real Obamacare Crisis
“Despite Obamacare’s promises to lower premiums, they continue to climb. At the same time, deductibles have grown, networks have narrowed, and choices have decreased.”
For more information, of course, please read Schaefer’s full article. In case you don’t, here is her conclusion:
“Congress should not turn a blind eye to Obamacare’s underlying issues by extending the expiring COVID-19-era subsidies. Instead, it should focus on fixing what’s really wrong — starting by restructuring subsidies and revamping the insurance market rules to bring greater transparency, accountability, and stability to enrollees and taxpayers alike.”
I’ll second that idea.
P.S. Here’s another brief article that reveals why the health insurance companies are lobbying in favor of extending the subsidies.
