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ObamaCare subsidies at center of Dem shutdown fight ‘fuel’ healthcare cost inflation, conservatives say

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The government has been shut down for a week and so far shows no clear sign of stopping, as Democrats continue to demand that any funding bill include an extension of enhanced ObamaCare subsidies, which are set to expire at the end of 2025.

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But conservative groups are pushing back hard, arguing that those subsidies are fuel on the fire of higher healthcare premiums.

«What the Biden COVID credit did is they made the situation worse in two ways: They shifted a portion of the premium away from the enrollees to the taxpayer, and they brought more people into the subsidy structure by lifting the cap at four times the poverty line,» Brian Blase, president of Paragon Health Institute, told Fox News Digital.

«So if the underlying ObamaCare subsidies were inflationary, then the Biden enhancements to it just pour fuel on that underlying inflationary structure.»

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SCHUMER’S SHUTDOWN SCHEME EXPLAINED: DEMS DOUBLE DOWN ON OBAMACARE CREDITS AS STANDOFF DRAGS ON

The government is in a partial shutdown after Congress failed to reach an agreement on federal funding. (Getty Images)

ObamaCare, formally called the Affordable Care Act (ACA), established a marketplace where healthcare insurers offer plans under certain rules set in place by the federal government, among other provisions. People and families are eligible for subsidies based on their income relative to the Federal Poverty Level (FPL).

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Former President Joe Biden’s American Rescue Plan, passed during the COVID-19 pandemic, expanded access so more Americans could qualify for subsidized ObamaCare plans while also lowering out-of-pocket costs. A Democrat-led Congress later extended those benefits to 2025 under the Inflation Reduction Act.

Now, however, Democrats are warning that many Americans’ healthcare costs are at risk of drastically rising if those enhanced subsidies are allowed to expire.

But conservative groups who have long objected to ObamaCare’s effects on the market are now arguing that the subsidies themselves have driven up the amount of money that healthcare companies charge for premiums.

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Brittany Madni, executive vice president at the Economic Policy Innovation Center (EPIC), told Fox News Digital, «You do have patients who are still continuing to pay high prices, and a huge reason that they’re paying higher prices is because the entire system has been artificially inflated by the unaffordable mandates in ObamaCare and the continued subsidies.»

«The supersized COVID credit subsidies aren’t reducing prices whatsoever. They’re just adding funds to the insurance revenues,» Madni said.

ObamaCare did originally include a federal-level tax penalty for Americans who remained uninsured after its passage. That was repealed under the first Trump administration, but some states have levied their own penalties in its place.

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Hakeem Jeffries and Chuck Schumer speak to the press.

House Minority Leader Hakeem Jeffries, left, speaks to the media next to Senate Minority Leader Chuck Schumer at the White House in Washington on Sept. 29, 2025.  (Kevin Lamarque/Reuters)

But conservatives say rising healthcare costs have been most acutely felt by U.S. taxpayers rather than ObamaCare enrollees.

«When insurers increase premiums, the cost is not paid by the enrollee, it’s paid by the taxpayer. So that gives insurers less incentive to negotiate lower prices with healthcare providers,» he said.

He said Biden’s legislation «made the situation worse because you make the taxpayer share even greater than it already was, and he lifted the cap at four times the poverty line, which brought more people into this subsidized market. So when you have all these people in a market where they don’t care what the premiums are, that is, of course, going to be inflationary.»

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Madni agreed that the COVID-era subsidies served to increase costs on taxpayers.

«What do you do if someone who is younger and healthier is choosing not to go into the risk pool and therefore driving up the overall cost of the risk, all because now it’s just full of sick people instead of healthy people in the middle?» You offer the plans for such a low rate that it seems silly not to jump into the deal,» she said. «You can’t actually get rid of the cost. You can only shift the cost. So it shifts from the enrollees who are in the risk pool to taxpayers.»

House Ways & Means Committee Chair Jason Smith, R-Mo., whose committee has jurisdiction over the enhanced subsidies, told Fox News Digital, «Democrats are doubling down on their failure to reduce the cost of healthcare, with premiums for ObamaCare marketplace plans increasing 80% since they were created a decade ago.»

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«When it comes to healthcare, Americans are paying more but getting less, paying higher deductibles, having their claims denied, and unable to see their doctor while insurers profit from generous taxpayer subsidies handed to them by Washington Democrats,» Smith said.

Jason Smith of Missouri is seen at the U.S. Capitol

House Ways & Means Committee Chair Jason Smith, R-Mo., leaves a meeting of the House Republican Conference in the U.S. Capitol on Feb. 14, 2024. (Tom Williams/CQ-Roll Call, Inc via Getty Images)

But outside conservative circles, people in the healthcare sphere argue that Americans will feel financial pain if the subsidies expire and deny the COVID-era enhancements’ contribution to inflated prices.

Cynthia Cox, who oversees ObamaCare research for KFF — an independent health policy research, polling and news organization — said that extending the subsidies would cost more taxpayer dollars but that they did not raise costs for insurers or enrollees.

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«I think from a taxpayer perspective or from a federal spending perspective, they certainly do raise costs,» Cox said. «But from an insurance perspective, they bring down average cost and, from an enrollee perspective, it also brings down the cost that they’re paying.»

Cox also said the ACA itself did have some «inflationary» aspects but that the COVID-era enhancements were not part of them.

DEMOCRATS REFUSE TO BUDGE OVER OBAMACARE FIGHT AS SHUTDOWN DRAGS ON

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«The tax credits do not have an inflationary effect on insurance premiums. In fact, they help keep they have a downward effect on insurance and the amount that the insurance company is charging,» Cox told Fox News Digital.

She pointed to the ACA’s protections for people with preexisting conditions, such as bans on insurance companies denying coverage or charging more based on individuals’ health, as potential drivers of healthcare cost inflation.

«But then the tax cuts are meant to kind of offset that by reducing how much individuals pay and subsidizing them,» Cox explained.

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«The idea is that it will make health insurance more attractive to healthier people, so therefore would not wait until they get sick to get coverage. They would start paying into the insurance pool when they’re healthier, and then that brings down the overall average premium that insurers charge.»

A photo of House Ways and Means Committee ranking member Rep. Richard Neal

House Ways and Means Committee ranking member Rep. Richard Neal, D-Mass., speaks during a hearing on Capitol Hill in Washington on June 8, 2022.  (Jose Luis Magana/AP Photo)

Brendan Buck, spokesman for Keep Americans Covered, reiterated Democrats’ warning that the expiring subsidies will lead to higher costs for people who currently benefit from them.

«There’s no inflation quite like seeing your health premiums more than double, which is the reality facing millions of working people if Congress doesn’t act. Things do cost too much, but the answer is not making families pay thousands more for their healthcare,» Buck told Fox News Digital.

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Rep. Richard Neal, the top Democrat on the House Ways & Means Committee, blamed President Donald Trump’s policies for driving up costs across the board.

«Republicans will throw out any excuse — no matter how debunked — to justify letting healthcare costs skyrocket. The facts are clear: extending the ACA tax credits will keep coverage in reach for millions, but Republicans would rather see their constituents’ costs jump on average by 114 percent than admit they’re wrong. And the truth is, the biggest driver of inflation and unaffordability is Trump himself,» Neal told Fox News Digital.

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Donald Trump pide cárcel para el gobernador de Illinois y el alcalde de Chicago por las marchas contra los operativos migratorios

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El presidente de Estados Unidos, Donald Trump, redobló sus ataques este miércoles contra las autoridades de Chicago y pidió prisión para su alcalde, Brandon Johnson, y el gobernador de Illinois, J.B. Pritzker, al considerar que no han hecho lo suficiente para proteger a los agentes del servicio de control de inmigración (ICE) durante los operativos en esa ciudad.

«¡El alcalde de Chicago debería estar en la cárcel por no proteger a los agentes de ICE! ¡Y el gobernador Pritzker también!», escribió el mandatario republicano en su red Truth Social.

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Trump ya había cargado el martes desde el Despacho Oval contra Pritzker y Johnson —ambos del Partido Demócrata—, resaltando la «incapacidad» de ambos en la gestión de «asuntos de delincuencia» en la ciudad.

Los enfrentamientos entre el presidente y las autoridades de Chicago aumentaron desde que hace un mes, cuando inició la operación Midway Blitz, liderada por el Servicio de Inmigración y Control de Aduanas de EE.UU., para «garantizar la seguridad» en la capital del centro-norte del país.

Durante los operativos hubo múltiples detenciones de personas de origen latino, principalmente con el objetivo de deportarlas, a tono con la dura política antiinmigratoria del Gobierno republicano.

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Estas operaciones provocaron crecientes protestas ciudadanas, contra las que agentes de la Patrulla Fronteriza dispararon el sábado en el área de South Side: hirieron a una mujer estadounidense.

A pesar de la oposición del alcalde Johnson y el gobernador Pritzker, que han demandado a la Administración para bloquear los esfuerzos, el presidente estadounidense ordenó el envío de cientos de tropas de la Guardia Nacional como respuesta a las manifestaciones contra las redadas y a lo que ve como «crimen rampante» en Chicago.

Trump también insinuó el martes que podría invocar la Ley de Insurrección vigente, uno de los poderes de emergencia más contundentes, para justificar el envío de tropas para sofocar las protestas en Chicago, después de amenazar con hacerlo en Portland, Oregón.

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Unos 200 soldados enviados Texas ya se encuentran instalados en Chicago, listos para ser desplegados, a los que se suman otros 300 miembros de Illinois que se preparan para movilizarse en los próximos días.

Estadísticas oficiales sobre criminalidad del Departamento de Policía de Chicago muestran descensos interanuales, con una reducción de los homicidios del 28% con respecto al mismo período del año pasado y de casi el 50% con respecto a hace cuatro años.

Tanto el gobernador J.B. Pritzker como el alcalde Brandon Johnson salieron rápidamente a responderle a Trump.

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«No daré un pasó atrás. Trump ahora pide el arresto de los representantes electos que ponen a prueba su poder. ¿Qué más queda en el camino hacia el autoritarismo declarado?«, publicó en X el gobernador Pritzker, que ayer llegó a decir que el presidente de EE.UU. mantiene una cruzada contra la inmigración en Illinois por «una fijación obsesiva» o porque padece «demencia».

«Sus agentes enmascarados ya están atrapando gente en la calle. Separando a los niños de sus padres. Creando miedo. Tomando a las personas por su apariencia. Haciendo que la gente sienta que necesita portar documentos de ciudadanía. Invadiendo nuestro estado con tropas militares. Enviando helicópteros de guerra en plena noche. Enviando helicópteros de guerra en plena noche. Todos debemos levantarnos y alzar la voz», agregó.

Por su parte, Johnson utilizó la misma red social para reafirmarse en que no irá «a ningún lado» y añadió: «Esta no es la primera vez que Trump intenta arrestar injustamente a un hombre negro«.

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Greta Thunberg slammed for using image of starved Israeli hostage to show Palestinians suffering in Gaza

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Swedish activist Greta Thunberg is facing backlash after using an image of an emaciated Israeli hostage in an Instagram post allegedly showing Palestinians suffering.

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The post read, «The suffering of Palestinian prisoners is not a matter of opinion — it is a fact of systemic cruelty and dehumanization. Humanity cannot be selective. Justice cannot have borders.» It also included three images, including one of hostage Evyatar David, who was taken from the Nova music festival on Oct. 7, 2023. 

The image of David was a still frame from a Hamas propaganda video. In the video, David appears extremely frail as he describes the conditions in captivity and says he hasn’t eaten for days. The part of the video that shocked many was when David’s captors forced him to dig his own grave.

GRETA THUNBERG’S ALLEGED JAIL COMPLAINTS CALLED ‘BRAZEN LIES’ BY ISRAELI GOVERNMENT

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Swedish activist Greta Thunberg prepares for departure with other activists on the Global Sumud Flotilla, a humanitarian expedition to Gaza, at the port of Barcelona, Spain Aug. 31, 2025.  (Eva Manez/Reuters)

Yeela David, Evyatar’s sister, commented on the post saying Thunberg needed to do research before posting «things you don’t understand.» She then added that, «every minute you are not deleting the post, you are becoming a bigger joke. Embarrassing.»

The post, which contained multiple images, appears to have since been edited and the slide with David’s image is no longer visible. The comment section, however, is full of reminders that his image was there with users decrying the «lies» showcased in the post.

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The slides were part of a collaboration post with Thunberg, Yasmin Acar, a member of the steering committee of the Freedom Flotilla Coalition; the Gaza Sumud Flotilla and two other accounts.

Instagram post about Palestinians featuring an image of Israeli hostage Evyatar David

Greta Thunberg is facing backlash after using a photo of starved hostage Evyatar David in a post claiming to depict the plight of Palestinians. (@IsraelMFA/X)

ISRAEL CLAIMS GRETA THUNBERG’S FLOTILLA SEEKING TO BREAK GAZA BLOCKADE HAS HAMAS TIES, CITES DOCUMENTS

The first slide of the post read, «The world is rightly horrified by what the Sumud Flotilla hostages are enduring,» referring to detainees arrested when Israel intercepted their fleet last week. «Their suffering is real and no human being should ever be subjected to such pain, fear or humiliation.» The post then goes on to compare this to the plight of Palestinians in Israeli prisons, with the activists asserting that over 11,000 Palestinian «hostages and prisoners» were held in unhygienic and inhumane conditions. 

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The group also included a video from 2015 in their post showing Ahmad Manasra, who was 13 at the time. Manasra was arrested in 2015 in connection with a Jerusalem stabbing attack during what is often called the «Knife Intifada,» according to The Jerusalem Post.

Evyatar David's mother holds a photo from a Hamas video of her son

Galia David, mother of Israeli hostage Evyatar David poses holding an image of her son during a press conference following a meeting with the president of the International Committee of the Red Cross (ICRC) at the Red Cross’ headquarters in Geneva, on Aug. 12, 2025.  (AFP via Getty Images)

The Israeli Ministry of Foreign Affairs posted a screenshot of the deleted slide next to a zoomed-in version of the still image of David, declaring, «Ignorance blinded by hate is trending.»

«Greta Thunberg posted about ‘Palestinian prisoners’ using the image of Israeli hostage Evyatar David – starved, abused, and forced by Palestinian Hamas to dig his own grave,» the ministry wrote on X.

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Greta Thunberg, wearing a black shirt and keffiyeh scarf, sits near an Israeli soldier in tactical gear.

Climate activist Greta Thunberg sits near an Israeli soldier after naval forces intercepted a Gaza-bound flotilla. (Israel Foreign Ministry)

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Thunberg, who became renowned for her climate activism while still in high school, has become a vocal critic of Israel since the war in Gaza began. She has participated in two Gaza-bound aid flotillas, both of which were intercepted by Israeli forces.

Fox News Digital reached out to Thunberg for comment.

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Liberal media darling in the hot seat after explosive interview goes viral

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Conservatives on social media blasted California Democrat Katie Porter, who is considered by many Democrats to be a frontrunner in the state’s gubernatorial race, after she attempted to end a contentious interview due to the follow-up questions asked by a reporter.

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The viral moment happened in a clip posted Tuesday night where Porter took issue with the line of questioning from CBS investigative journalist Julie Watts, who was pushing Porter on whether she can and needs to appeal to the millions of Trump voters in the state to become the next governor.

«I feel like this is unnecessarily argumentative,» Porter said, adding, «I don’t want to keep doing this, I’m going to call it.»

The exchange quickly went viral on social media, with conservatives hammering Porter for becoming frustrated over simple follow-up questions that Watts argued were asked of the other candidates in the race as well.

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CALIFORNIA’S LARGEST HIGH SCHOOL DISTRICT ADOPTS POLICY TO OPPOSE TRANS ATHLETES IN GIRLS’ SPORTS

Rep. Katie Porter (D-CA) speaks at the «Just Majority» Supreme Court press conference on June 22, 2023 in Washington, DC.  ((Photo by Paul Morigi/Getty Images for Just Majority))

«This Katie Porter crashout is INCREDIBLE,» Republican communicator Matt Whitlock posted on X.

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«California Democratic consultants have been telling me for years that Katie Porter is the most unpleasant and unprofessional candidate they’ve ever encountered and well…I think they might have been on to something,» political consultant Liz Mair posted on X. 

«Katie Porter just had a meltdown when asked what she’d say to GOP voters,» GOP California Congressman Ken Calvert posted on X. 

«Her tirade is a window into the mentality of radical CA Democrat politicians. They can’t stand those who disagree with them,» he continued. «They’re trying to silence their opponents with Prop 50. They even condone violent rhetoric targeting Republicans. We have to speak up. We have to vote NO on Prop 50. We have to take our state back from these extremists.»

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HIGH-PROFILE DEM JUMPS INTO CROWDED CALIFORNIA GOVERNOR’S RACE AMID PAST OFFICE CONTROVERSIES

Katie Porter at campaign event

Rep. Katie Porter (D-CA) speaks to supporters, volunteers, and staff at an election night watch party at the Hilton Orange County Hotel on Nov. 8, 2022, in Costa Mesa, California. (Getty)

«Katie Porter having a meltdown over a journalist being a journalist is exactly what I needed to see this morning,» conservative commentator Riley Gaines posted on X. 

«Thoughts and prayers to Katie Porter’s campaign staff who must deal with this every day and can’t film it,» Congressional Leadership Fund Communications Director Torunn Sinclair posted on X.

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«Katie Porter is the epitome of a Karen,» Republican digital operative Alec Sears posted on X. «When I picture a Karen in my mind it’s just Katie Porter. Just pure, unearned ego and a vile attitude.»

«Follow-up questions are a fact of life,» political commentator Michelle Tafoya posted on X.  «A good reporter listens to your answer and follows up for clarification. @katieporteroc has no business leading a state.  Any state.»

«This is simply not how to run for office or how to deal with the media,» Democratic consultant Lis Smith posted on X. «And if this how someone acts on camera, imagine how they act off camera.»

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President Biden is seen with Rep. Katie Porter in California in October 2022

President Biden looks on as Rep. Katie Porter, D-Calif., speaks before Biden delivered remarks on lowering costs for American families at Irvine Valley College in Orange County on Oct. 14, 2022, in Irvine, California.  (Mario Tama/Getty Images)

Porter, 51, served three terms in Congress – winning her Orange County seat by upsetting GOP Rep. Mimi Walters in 2018. She ran unsuccessfully for the Senate seat now held by Sen. Adam Schiff, D–Calif., and her district is now represented by Dave Min, a Democrat. 

The Los Angeles Times describes Porter as a prolific fundraiser, while the former lawmaker’s gregarious nature was projected at the time of her jumping into the race to make inroads among Californians upset at President Donald Trump’s election.

In her announcement, Porter referenced Trump and alleged he would seek to enrich himself and his circle while in the White House.

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Porter is running for governor in a crowded field of Democrats and Republicans competing in the state’s «jungle primary» system, where the two candidates who receive the most votes in the primary, regardless of party, will advance to the general election. 

Several of Porter’s opponents reacted to the viral clip on social media. 

«We need a leader who will solve hard problems and answer simple questions,» former Los Angeles Mayor Antonio Villaraigosa, a Democrat, posted on X. 

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«I’m not interested in excluding any vote,» former HHS Secretary Xavier Becerra, a Democrat, posted on X. «Every Californian deserves affordable health care, safe streets, a roof over their head and a living wage.»

HHS Sec. Xavier Becerra speaks at hearing on Capitol Hill

Former Health and Human Services Secretary Xavier Becerra speaks during a hearing on Capitol Hill on November 20, 2024 in Washington, DC. (Tasos Katopodis/Getty Images)

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Republican candidate Steve Hilton posted on X, «15 years of one party rule. This is what you get. It’s time for change in California.»

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Republican candidate Chad Bianco, currently sheriff of Riverside County, California, described the clip in a post on X as a «tantrum.»

«Katie Porter is just another unhinged Democrat who would complete Gavin Newsom’s destruction of our beautiful state,» Bianco continued. 

Fox News Digital’s Charlez Creitz contributed to this report.

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