End the Obamacare Subsidies

The Schumer Shutdown has reignited a bitter dispute centered on the extension of COVID-19-era “temporary emergency” Obamacare subsidies that Democrats insist on keeping alive.

The COVID-19 emergency ended in May 2023, yet these enhanced subsidies, which were initially meant to be temporary, continue to drain hundreds of billions from taxpayers. At this point, the only purpose they’re serving is to cover up the fact that Obamacare failed make health care more affordable.

Underneath the political theater lies the reality that millions of Americans have become dependent on these enhanced subsidies—a surge in enrollment fueled by expanded eligibility and increased financial assistance. According to the Kaiser Family Foundation, nearly 92% of enrollees now benefit from these subsidies. But the question is, at what cost? The Congressional Budget Office estimates that permanently extending these subsidies would add about $350 billion to the deficit over the next decade, though some estimates are even higher.

The problem isn’t the subsidies, it’s Obamacare.

It failed—but now Democrats want you to believe Republicans are to blame for rising health care costs. Tune in to CNN, MSNBC, or scroll through Democratic talking points on social media, and you’ll hear the same refrain: Republicans are creating a “health care crisis” and premiums will “skyrocket” if these subsidies expire. What they don’t want you to remember is that Democrats built Obamacare—and they own the massive, costly mess it’s become.

For years, many have watched their insurance premiums skyrocket regardless of whether they qualified for subsidies.

“Obamacare offers junk insurance at outrageous premiums,” explains the Cato Institute’s Michael F. Cannon. “In 2021, Democrats created temporary COVID-19 emergency premium subsidies for families earning $130,000 to $600,000 annually because even wealthy people struggle to afford Obamacare.”

In fact, healthcare spending ballooned to nearly a third of the federal budget, exceeding $2 trillion and approximately 8% of GDP, driven partly by these government subsidies. Forecasts indicate such spending will continue to outpace economic growth, making the urgent need for cost controls in healthcare reform unavoidable if fiscal sustainability is to be achieved.

Self-serving schemes have even emerged from the chaos. Fraudulent enrollments have scandalized the system, with low-income Americans unknowingly signed up for government-subsidized health insurance after being lured by false social media ads promising cash benefits. Brokers, enticed by commissions, have taken advantage, enrolling people without their informed consent—all while the government foots the bill thanks to the “temporary” enhanced subsidies that never seem to end.

The government shutdown fueled by the Obamacare subsidy stalemate is a symptom of a much deeper problem: a broken health insurance system that remains expensive, bureaucratically bloated, and ripe for abuse. Extending temporary subsidies without tackling the structural issues only perpetuates the cycle of sky-high premiums, swelling deficits, and political brinkmanship—leaving ordinary Americans to pay more for less.

The time for actual change is now, not endless extensions of “temporary” fixes that have long outlived their welcome. Congress needs to fix the problem, not subsidize it.

Repealing Obamacare would be a good start.