Health Care Reform: A New Approach
The current Democratic approach to health care reform, focused on extending Obamacare subsidies, is not an effective solution to lower health care costs.
At the center of the budget standoff is the insistence on policy changes, including the expansion of Obamacare premium tax credits, also known as "Biden COVID-19 credits".
Democrats think the best way to lower health care costs is to direct more funding to insurance companies. This idea could not be more wrong.
The credits are costly, poorly targeted, and prone to fraud, and do not address the issue of rising premiums. According to the Congressional Budget Office (CBO), permanently extending the Biden COVID-19 credits would cost approximately $410 billion over the next decade, with total spending amounting to $488 billion.
Instead of providing a solution, the funds would go directly to insurance companies, masking the true cost of coverage.
Author's Summary
Dems' healthcare plan won't lower costs.
- Costly credits: $410 billion over 10 years
- Poorly targeted and prone to fraud
- No solution to rising premiums