Murphy: $400B in Tax Money Directly Funds Insurance Firms in NC

According to U.S. Rep. Dr. Greg Murphy, R-N.C., taxpayers owe over $400 billion through expanded subsidies related to the Affordable Care Act implemented on an emergency or temporary basis. These measures were aimed to make health insurance more accessible during the COVID-19 pandemic.

The congressman highlighted that benchmark premiums have surged 75% since 2019. A significant portion, one-third of the spending, is directed to households earning six figures, he said. Furthermore, Murphy criticizes that 90% of enrollees would still receive subsidies even if the emergency measures expire as planned on Dec. 31.

Murphy expressed concern that the enrollment of individuals who hardly or never file claims makes the risk pool appear healthier than it is. This, he reasoned, artificially reduces premiums, creating a windfall for insurance companies.

“These individuals are on the exchange that have relation to this,” Murphy explained, referring to people not covered by their employer-sponsored health plans or Medicaid – a number he estimates to be smaller than those under company or government coverage.

Temporary Credits and Their Expiration

According to Murphy, Democrats established the temporary credits under the American Rescue Plan and the Inflation Reduction Act. He brought up the question of whether these credits should expire, continue, or be subject to debate in the midst of the government shutdown, now in its unprecedented sixth week.

“Six to 12 million individuals enrolled in these plans have filed no claims during the entire period, indicating fraudulent activity,” Murphy alleged. He criticized that the federal government’s checks—funded by taxpayer dollars—are directly benefitting insurance companies’ profit margins.

An article by Ricardo Marto, an economist at the Federal Reserve Bank of St. Louis, earlier this year pointed out that the healthcare sector is one of the top four industries experiencing record highs since the beginning of COVID-19.

Insurance Companies’ Profits Amid Premium Increases

UnitedHealth Group, the leading health insurance company, reported a net profit of $14.4 billion in 2024, impacted by a cyberattack. This follows profits of $22.4 billion in 2023, $20.6 billion in 2022, $17.3 billion in 2021, and $15.4 billion in 2020. Elevance Health and CVS Health, also known as Aetna, reported profits of $6 billion and $4.6 billion respectively in 2024, making up the top three for that year.

Murphy linked the increased profits of these companies to the 75% rise in insurance premiums since 2019. “Democrats removed the cap on limits for people receiving the enhanced premium tax credits,” he noted. This means families earning up to $600,000 annually can become eligible.

If the temporary measures were to be completely discontinued, “over 90% of people enrolled in the exchange would still receive subsidies, with low-income individuals keeping 95% of theirs,” Murphy stated. He believes that the majority of individuals would remain unaffected if the measures were to completely stop.