Republican Plan May Raise Health Care Premiums for Millions of Americans
TL/DR –
The new Consumer Affordability and Responsibility Enhancement (CARE) Act proposed by Ohio Republican Senator Bernie Moreno could cause health care premiums to rise for millions of Americans. The Act, which provides a temporary ACA Premium Tax Credit extension and a two-year transition period from COVID-era credits, also aims to phase out subsidies for high earners and end $0 premiums. Critics argue the plan places a greater financial burden on middle-income families and older adults, while others believe it’s a political move rather than a policy innovation.
Health Care Premiums May Increase Due to Republican Plan
Republicans have proposed a plan that would result in a rise in health care premiums for many Americans, with the introduction of the Consumer Affordability and Responsibility Enhancement (CARE) Act. This is spearheaded by Senator Bernie Moreno, an Ohio Republican, and involves a temporary ACA Premium Tax Credit extension and a two-year transition from COVID-era credits.
Pandemic-Era ACA Tax Credits
During the pandemic, an enhanced Affordable Care Act (ACA) tax credit system was approved by the Democratic-led Congress, resulting in 24 million Americans signing up for coverage in 2025. Most are receiving premium assistance, often resulting in monthly costs of $0 or close to $0.
CARE Act Details
The proposed law would phase out subsidies for high earners. Households with income of $200,000 or more would no longer qualify for the tax credits. The bill also aims to eliminate $0 premiums and introduce a mandatory $25 minimum monthly payment to prevent potential fraud and abuse linked to zero-premium plans.
In response to criticisms, Moreno stated, “Barack Obama and the Democratic Party created this disaster… I am willing to work with anyone to finally bring down costs for all Americans and hope my colleagues across the aisle will commit to doing the same.”
Criticisms of the CARE Act
Experts are skeptical about the act’s impact on health coverage. Michael Ryan, a finance expert, described the Republican proposal as a political move that will lead to increased premiums for millions relying on ACA exchanges. He noted, “In plain English, the ‘plan’ is to spend less on subsidies and let consumers pick up the difference. That hits middle‑income families and older pre‑Medicare adults hardest.”
Reactions to the Plan
Senate Appropriations Committee Chair, Susan Collins, expressed her concern for struggling families, and stated the bill would help prevent unaffordable increases in health insurance premium costs. However, Ryan emphasized the political nature of the plan, suggesting it was more “political insulation, not policy innovation.” Alex Beene, a financial literacy instructor, pointed out that abrupt changes could lead to millions having to pay dramatically more for coverage or forgo insurance altogether.
What’s Next for the Plan?
Kevin Thompson, CEO of 9i Capital Group, stated the plan’s chance of congressional approval is “slim to none,” and described it as more politics than a realistic path forward. Thompson also pointed out the potential negative impact on families relying on subsidies to maintain affordable coverage.
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