The Shadow
Democrats: Affordable Care Act Is Unaffordable as Originally Passed
Once again, Obamacare has entered Congressional debate. It is failing to deliver affordable health insurance!
This time, it is the Democrats making the argument.
Now, I confess to you that I was shocked to hear a Democratic Member of Congress say recently in a hearing: “if these credits expire and premiums rising by hundreds of dollars each month and thousands each year, putting affordable coverage out of reach.”
Many Democrats made similar arguments: that without a renewal of the “enhanced” premium tax credits originally passed as a temporary measure in 2021, health insurance in the Obamacare exchanges isn’t affordable!
I confess to the reader that I don’t think they meant to say that, but it is what they said.
Let me give you the background.
Democrats created the temporary “enhanced” premium tax credits during the COVID-19 crisis that put millions of Americans out of work,
It was understandable to create this policy. People needed help due to economic pains. So the temporary “enhanced” credit helped Americans pay their premiums.
As part of the Inflation Reduction Act, Democrats set an expiration for these temporary COVID-era credits. The credits were meant to be a temporary fix, not a permanent health insurance solution. They reasoned as the job market rebounded, so would economic outlooks.
Democrats designated their expiration for December 31st, 2025.
However, the program’s tentative end creates a situation where people could face significant premium cost increases within Obamacare exchanges.
This Democratic Party policy created a financial cliff, which will cause stress to a lot of American families.
I believe we need a phase-out of the program instead of the steep cliff.
Shockingly, because Republicans have not yet addressed the policy expiration that Democrats created, progressive Democrats are demanding the upcoming government funding bill feature a permanent extension of these originally temporary COVID-era “enhanced” premium tax credits.
It made me scratch my head in wonderment as I listened to arguments made by Democrats.
As the Democratic logic went, without the special program designed to account for the COVID-19 pandemic, President Obama’s signature health achievement didn’t deliver affordable health insurance for Americans as promised.
They argued insurance in the Obamacare exchanges needs to be subsidized even more than called for in the original bill! Therefore, Obamacare failed in its mission to make health insurance affordable.
It could be a mere rhetorical device to push their current agenda, but Democrats are trampling all over their legacy program from the Obama era to do so.
Democratic lawmakers appear to acknowledge that Obamacare is broken.
I was an early and outspoken opponent of Obamacare. My predecessor in Congress voted against it because he saw there were problems in the bill for a rural, aging population like the Ninth District.
But given current circumstances, I believe we need to establish a glide path for these temporary COVID-era “enhanced” premium tax credits.
If not addressed, enrollees in Obamacare exchange plans may run up against a cliff and face major financial challenges.
One possible solution is to grandfather the program so that the credits don’t apply to those who are not currently enrolled.
Another compromise on the policy could be setting an income cap, because lower-income, more vulnerable folks are most in need of relief.
A third one is some combination of the two.
What the ultimate compromise will look like? I don’t know, we will see! But a negotiated compromise is needed.
However, Senate Democrats shutting down the government while those negotiations are happening does not help millions of Americans and only divides those seeking a solution.
It appears Democrats are admitting they were wrong about Obamacare insurance exchanges being affordable.
And I will admit that I was originally wrong about the cost-sharing program for Obamacare Bronze plans. The cost-sharing program with Bronze plans helps enrollees transition from Medicaid Expansion programs into the more traditional plans offered in the Obamacare exchanges.
The shift from Medicaid Expansion to Obamacare exchanges can be so costly, we even hear stories of people declining or resigning from jobs where they received promotions. They do so because despite a boosted salary, such promotions fail to compensate for the rise in health care costs as a result of shifting from Medicaid Expansion.
Thus, I am pushing for a return to the cost-sharing program.
As a compromise on the “enhanced” premiums is debated, I will continue to push solutions that deliver affordable, quality health insurance.
If you have questions, concerns, or comments about my constituent services, feel free to contact my office. You can call my Abingdon office at 276-525-1405 or my Christiansburg office at 540-381-5671. To reach my office via email, please visit my website at https://morgangriffith.house.gov/.
