A time-honored political ploy is to pass a “temporary” subsidy that people get used to and then cry out of hardship when the emergency program ends. The latest example is the Democratic scramble to make permanent a massive Obamacare subsidy expansion passed during the pandemic.
Lawmakers are touting expanded subsidies to buy Obamacare plans, which passed in 2021 and are due to expire at the end of the year. If the subsidy is not extended, the letter warns, nominees will soon see an increase in premium. There’s no doubt that Democrats are concerned about the political consequences, but it’s a subsidy rock of their own design.
The American Rescue Plan Act juiced up subsidies for ObamaCare, and earners over 400% of the federal poverty line became eligible, depending on the cost of the “benchmark” plan. A family of four in which a 60-year-old head of household can earn $265,000. earns may be eligible for Over $7,800 per year in taxpayer subsidies.
At the lower end of the income scale, Democrats essentially started offering insurance. Around 50 lakh enrolled people with income below 150% of the poverty line did not pay any premium for their scheme in 2022, according to an analysis, Democrats present this as good news – free health care! -But the subsidy goes to the insurance companies, which can then raise the premium further, knowing that the government will cover the difference.
Putting more money into Obamacare will not improve the quality of health coverage. A family of four looking for a plan without subsidies on the Obamacare exchanges “can expect to pay about $25,000 for the year in premiums and deductibles,” according to eHealth. an analysis by, Bonus: You might not see the doctor you like, given that plans have narrow doctor and hospital networks.
The Congressional Budget Office predicted that pandemic subsidy provisions would cost about $34 billion, but that’s only the beginning if the stigma persists. Last week the CBO raised its estimate of spending on Obamacare subsidies by 15%, or $11 billion, this year compared to last year’s forecast, thanks to higher enrollments and higher premiums than anticipated.
Democrats cite the public’s approval of the Affordable Care Act as a political winner, but the legislation’s subsidies were already liberal and the benefits of the pandemic were sold to stave off hardship in a temporary crisis. Republicans are afraid to even discuss healthcare these days, but they should feel free to point out that Democrats have no plan other than throwing more money at a useless law.
Wonder Land: The White House now says the US economy is ‘in transition’. He liked that part. Images: Universal Archive via Getty Images/AP Composite: Mark Kelly
opinion | When ‘Temporary’ Obamacare Subsidies Are Forever
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A time-honored political ploy is to pass a “temporary” subsidy that people get used to and then cry out of hardship when the emergency program ends. The latest example is the Democratic scramble to make permanent a massive Obamacare subsidy expansion passed during the pandemic.
More than two dozen Democrats wrote to their leaders this month Calling for the inclusion of provisions to “permanently reduce health care costs” in any reconciliation bill, and signatories include some in a tough re-election race like Abigail Spanberger from Virginia.
Lawmakers are touting expanded subsidies to buy Obamacare plans, which passed in 2021 and are due to expire at the end of the year. If the subsidy is not extended, the letter warns, nominees will soon see an increase in premium. There’s no doubt that Democrats are concerned about the political consequences, but it’s a subsidy rock of their own design.
The American Rescue Plan Act juiced up subsidies for ObamaCare, and earners over 400% of the federal poverty line became eligible, depending on the cost of the “benchmark” plan. A family of four in which a 60-year-old head of household can earn $265,000. earns may be eligible for Over $7,800 per year in taxpayer subsidies.
At the lower end of the income scale, Democrats essentially started offering insurance. Around 50 lakh enrolled people with income below 150% of the poverty line did not pay any premium for their scheme in 2022, according to an analysis, Democrats present this as good news – free health care! -But the subsidy goes to the insurance companies, which can then raise the premium further, knowing that the government will cover the difference.
Putting more money into Obamacare will not improve the quality of health coverage. A family of four looking for a plan without subsidies on the Obamacare exchanges “can expect to pay about $25,000 for the year in premiums and deductibles,” according to eHealth. an analysis by, Bonus: You might not see the doctor you like, given that plans have narrow doctor and hospital networks.
The Congressional Budget Office predicted that pandemic subsidy provisions would cost about $34 billion, but that’s only the beginning if the stigma persists. Last week the CBO raised its estimate of spending on Obamacare subsidies by 15%, or $11 billion, this year compared to last year’s forecast, thanks to higher enrollments and higher premiums than anticipated.
Companies can respond by sending more of their employees to exchanges for coverage. Healthcare analyst Doug Badger notes that smaller companies that are not subject to the Affordable Care Act’s mandate to provide insurance “There would be a strong incentive to discontinue job-based coverage.” This is especially true for businesses whose employees are older or underpaid, and thus can receive large subsidies. Dear reader, you will pick up the tab.
Democrats cite the public’s approval of the Affordable Care Act as a political winner, but the legislation’s subsidies were already liberal and the benefits of the pandemic were sold to stave off hardship in a temporary crisis. Republicans are afraid to even discuss healthcare these days, but they should feel free to point out that Democrats have no plan other than throwing more money at a useless law.
Wonder Land: The White House now says the US economy is ‘in transition’. He liked that part. Images: Universal Archive via Getty Images/AP Composite: Mark Kelly
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Published May 31, 2022, print edition ‘When ‘Temporary’ Subsidies Are Forever.