Democrats are making plenty of noise about Obamacare subsidies expiring, pointing fingers at Republicans and claiming the GOP is letting health insurance costs spiral out of control. The fight over these pandemic-era subsidies has even triggered a government shutdown, with Democrats refusing to vote on budget extensions unless the subsidies get extended.
But here is the real issue they keep dodging: Obamacare itself has been a disaster from the start, and no amount of government subsidies can fix a fundamentally broken system.
When Obamacare passed in 2010, Barack Obama stood before the American people and made a very specific promise. He said his signature law would reduce premiums by $2,500 per year for the average family by the end of his first term.
That was the pitch: Lower costs. More affordable coverage. A healthcare system that actually worked for ordinary Americans.
Except none of that happened.
Instead, families across the country watched their premiums climb year after year while their coverage got worse.
I decided to dig into my own health insurance records to see exactly how much more I am paying now compared to before the Obamacare exchanges opened.
Back in 2013, my mid-level individual plan cost $357.81 per month before any employer contribution.1
Fast forward to today, and I am paying $636.19 per month for the lowest level individual plan available.
That works out to $3,340.56 more per year. And I do not qualify for any subsidies.
Obama’s promise was not just wrong. It was spectacularly, outrageously wrong.
This is not just my story. It’s everyone’s story.
Earlier this week, Sen. Bernie Sanders accidentally proved that Obamacare is a massive failure when he posted a chart on X showing that health care costs have more than doubled since 2000.
Obamacare became law on March 23, 2010, as the chart makes painfully clear, health care costs have continued to climb relentlessly, with no relief in sight. For years, Democrats insisted that even if premiums rose, Obamacare at least slowed the pace. But Sanders’ chart exposes that claim as a myth. The upward climb hasn’t eased; it hasn’t slowed; it hasn’t paused. Health care costs never stabilized, never flattened, and every “solution” since has failed to deliver the affordable care Americans were promised. Empty promises. Heavier burdens. That is Obamacare in action.
So, I fixed the chart:
Make no mistake: rising health care costs aren’t about subsidies—they’re about the cost of care itself, which keeps climbing despite Obama’s promises that it would go down. Democrats have tried to mask the problem by throwing subsidies at it, turning what were meant to be temporary COVID relief measures into permanent fixes. Instead of addressing the underlying costs, they keep papering over the issue with more spending.
Democrats claim Republicans are heartless for not rubber-stamping billions more in spending to prop up a law that has never delivered on its promises. But subsidies do not solve the underlying problem. They just hide the true cost of insurance by shifting the burden onto taxpayers. All the subsidies do is mask the damage while insurance companies and the government continue to rake in money at the expense of working families.
Republicans are right to balk at extending these subsidies, especially given concerns about fraud, waste, and abuse in the system. Critics have noted that the enhanced tax credits have cost tens of billions in improper and fraudulent payments. And the Congressional Budget Office estimates that making the subsidies permanent would cost $358 billion over the next decade. That is money being poured into a failing system instead of being used to fix the root causes of rising healthcare costs.
The debate should not be about subsidies at all. It should be about repealing Obamacare entirely and starting over with a system that actually works for the American people. The problem is that Obamacare has failed, and Democrats refuse to admit it. Instead of propping up a law that has driven up costs and reduced the quality of coverage, Congress should be focused on getting rid of it and implementing real reforms that will bring down costs and give Americans access to quality healthcare without forcing them to rely on government handouts. Obamacare is the problem, and it is about time Washington recognized that and did something about it.
For reasons I do not need to get into, my wife and I maintain separate plans.
You wrote:"The debate should not be about subsidies at all. It should be about repealing Obamacare entirely and starting over with a system that actually works for the American people." I think that's all that really needs to be said. It failed, repeal it and replace it. Start by getting rid of the litigiousness allowed by the system. Make frivolous lawsuits expensive for those bringing them. Then we can get rid of all the extra tests that do nothing but help the doctor's defense in a malpractice suit. Find a way to insure realistic rates are charged for services rendered. I'm not against taking care of those who cannot care for themselves, however there needs to be a realistic gate on who gets the freebies. It seems the government is working to get people into the programs that provide free stuff - it needs to be harder than getting an EBT card.
Then maybe real medical (and therefore insurance costs) will go down.