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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.
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.»
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).
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.
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.
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.»
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.»
«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.
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.
«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
«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.
«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.»
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.
politics,health care healthy living,congress,government shutdown
INTERNACIONAL
Comey pleads not guilty in court after indictment on alleged false statements, obstruction
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Former FBI Director James Comey pleaded not guilty to charges of allegedly making false statements and obstruction of a congressional hearing during his first court appearance in Virginia on Wednesday.
The former FBI director appeared at 10 a.m. ET in the Albert V. Bryan United States Courthouse in Alexandria, Va. Comey’s wife, Patrice, and daughter, Maureen, were spotted waiting in line outside the courthouse Wednesday morning.
District Judge Michael S. Nachmanoff, an appointee of former President Joe Biden, presided over the hearing. Comey’s lawyer, Patrick Fitzgerald, told Nachmanoff that representing Comey «is the honor of my life» and that his team would be filing motions alleging a vindictive and retaliatory prosecution as well as outrageous government conduct.
Nachmanoff set oral argument dates for Nov. 19 and Dec. 9 and a jury trial to begin on Jan. 5, 2026.
COMEY INDICTED FOR ALLEGED FALSE STATEMENTS, OBSTRUCTION OF CONGRESSIONAL PROCEEDING
Patrice Failor (L), wife of former FBI director James Comey, is embraced by her daughter Maurene Comey as they arrive at the U.S. District Court for the Eastern District of Virginia’s Bryan Courthouse on October 08, 2025 in Alexandria, Virginia. (Photo by Chip Somodevilla/Getty Images)
The only time Comey spoke during the hearing was when the judge asked if he understood the charges against him.
«I do your honor,» Comey said. «Thank you very much.»
Comey was indicted in September by a federal grand jury on two counts: alleged false statements within jurisdiction of the legislative branch and obstruction of a congressional proceeding.
The indictment alleges that Comey obstructed a congressional investigation into the disclosure of sensitive information in violation of 18 USC 1505.
The indictment also alleges Comey made a false statement when he stated he did not authorize someone at the FBI to be an anonymous source. According to the indictment, that statement was false.
Fox News Digital exclusively reported in July that Comey was under criminal investigation by the FBI. The probe into Comey centered on whether he lied to Congress during his Sept. 30, 2020, testimony about his handling of the original Trump–Russia probe at the FBI, known inside the bureau as «Crossfire Hurricane.»
«No one is above the law,» Attorney General Pam Bondi said on X after the indictment, adding that it «reflects this Department of Justice’s commitment to holding those who abuse positions of power accountable for misleading the American people. We will follow the facts in this case.»
Former FBI Director James Comey is seen at a hearing on Capitol Hill in 2017. (Associated Press)
COMEY DENIES CHARGES, DECLARES ‘I AM NOT AFRAID’
FBI Director Kash Patel said «previous corrupt leadership and their enablers weaponized federal law enforcement, damaging once proud institutions and severely eroding public trust.»
«Every day, we continue the fight to earn that trust back, and under my leadership, this FBI will confront the problem head-on,» Patel said. «Nowhere was this politicization of law enforcement more blatant than during the Russiagate hoax, a disgraceful chapter in history we continue to investigate and expose.»
He added: «Everyone, especially those in positions of power, will be held to account – no matter their perch.»
Comey, after being indicted, posted an Instagram video, denying the allegations.
«My family and I have known for years that there are costs to standing up to Donald Trump, but we couldn’t imagine ourselves living any other way,» he said. «We will not live on our knees, and you shouldn’t either. Somebody that I love dearly recently said that fear is the tool of a tyrant, and she’s right.»
«But I’m not afraid,» Comey added.
«My heart is broken for the Department of Justice, but I have great confidence in the federal judicial system and I am innocent, so let’s have a trial and keep the faith,» Comey said.
Fox News Digital also exclusively reported that former CIA Director John Brennan is under criminal investigation related to the Trump–Russia probe.
Under federal law, prosecutors have five years to bring a charge, with the five-year mark occurring Tuesday.
TRUMP SAYS COMEY ‘PLACED A CLOUD OVER THE ENTIRE NATION’ WITH CROSSFIRE HURRICANE, REACTS TO INDICTMENT
The case is being handled by the U.S. Attorney’s Office for the Eastern District of Virginia.
The FBI opened its Trump-Russia probe in July 2016, known inside the bureau as «Crossfire Hurricane.»
Robert Mueller, former special counsel for the U.S. Department of Justice. (AP newsroom; Andrew Harrer/Bloomberg via Getty Images; Mike Cohen/Getty Images for The New York Times)
President Donald Trump, during his first term, fired Comey in May 2017.
Days later, Robert Mueller was appointed special counsel to take over the FBI’s original «Crossfire Hurricane» investigation.
After nearly two years, former Special Counsel Robert Mueller’s investigation, which concluded in March 2019, yielded no evidence of criminal conspiracy or coordination between the Trump campaign and Russian officials during the 2016 presidential election.
Shortly after, John Durham was appointed as special counsel to investigate the origins of the «Crossfire Hurricane» probe.
EXCLUSIVE: FBI LAUNCHES CRIMINAL INVESTIGATIONS OF JOHN BRENNAN, JAMES COMEY: DOJ SOURCES
Durham found that the FBI «failed to act» on a «clear warning sign» that the bureau was the «target» of a Clinton-led effort to «manipulate or influence the law enforcement process for political purposes» ahead of the 2016 presidential election.
Fox News Digital broke a series of stories related to Special Counsel John Durham’s findings. (Julia Nikhinson/Reuters)
«The aforementioned facts reflect a rather startling and inexplicable failure to adequately consider and incorporate the Clinton Plan intelligence into the FBI’s investigative decision-making in the Crossfire Hurricane investigation,» Durham’s report states.
«Indeed, had the FBI opened the Crossfire Hurricane investigation as an assessment and, in turn, gathered and analyzed data in concert with the information from the Clinton Plan intelligence, it is likely that the information received would have been examined, at a minimum, with a more critical eye,» the report continued.
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Durham, in his report, said the FBI «failed to act on what should have been — when combined with other incontrovertible facts — a clear warning sign that the FBI might then be the target of an effort to manipulate or influence the law enforcement process for political purposes during the 2016 presidential election.»
Fox News’ Wyatt Dobrovich-Fago contributed to this report.
james comey,fbi,justice department,russia investigation
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Israeli forces intercepted another flotilla attempting to break the country’s naval blockade and reach Gaza, the Israeli Foreign Ministry said, calling the effort a «futile attempt» that «ended in nothing.» The ministry also said that the vessels and passengers were transferred to an Israeli port and were safe and in good health. Passengers are expected to be deported promptly, according to the ministry.
The nine-boat fleet was carrying 145 activists participating in the Freedom Flotilla Coalition & Thousand Madleens to Gaza, The Associated Press reported, citing the Israeli Foreign Ministry. Flotilla organizers said in a statement that the fleet was carrying more than $110,000 worth of aid, including medicine, respiratory equipment and nutritional supplies meant for Gaza’s hospitals.
ISRAEL CLAIMS NO AID WAS FOUND ABOARD GAZA-BOUND FLOTILLA
This image obtained from live stream footage from Gaza Sunbird vessel, one of the nine boats taking part in the Freedom Flotilla Coalition & Thousand Madleens to Gaza, shows Israeli forces approaching in boats, in the Eastern Mediterranean Sea, on Wednesday, Oct. 8, 2025. (Freedom Flotilla Coalition via AP)
David Heap, of the Canadian Boat to Gaza and Freedom Flotilla Coalition Steering Committee, asserted that «Israel has no legal authority to detain international volunteers aboard these ships.»
«Our volunteers are not subject to Israeli jurisdiction and cannot be criminalized for delivering aid or challenging an illegal blockade. Their detention is arbitrary, unlawful, and must end immediately,» Heap added.
This image obtained from live stream footage from Gaza Sunbird vessel, one of the nine boats taking part in the Freedom Flotilla Coalition & Thousand Madleens to Gaza, shows an Israeli soldier trying to reach the camera onboard Gaza Sunbird vessel, in the Eastern Mediterranean sea, on Wednesday, Oct. 8, 2025. (Freedom Flotilla Coalition via AP)
ISRAEL CLAIMS GRETA THUNBERG’S FLOTILLA SEEKING TO BREAK GAZA BLOCKADE HAS HAMAS TIES, CITES DOCUMENTS
This seizure comes just days after Israeli forces intercepted another aid flotilla and arrested the activists on board, including Greta Thunberg, an outspoken critic of Israel. Thunberg was also arrested while participating in a flotilla in June.
The Global Sumud Flotilla, which was intercepted on Oct. 2, became the subject of controversy when Israel said the fleet did not have any aid. Flotilla organizers insist that the claim was «not just verifiably false; it is obscene,» saying that the boats were «meticulously documented, loaded with medical supplies, food and other life-saving foods for people in Gaza.»
Israeli forces storm a Global Sumud Flotilla vessel on Oct. 2, 2025, as the boat attempted to sail toward Gaza. (Global Sumud Flotilla via AP)
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Thunberg was also aboard another Gaza-bound flotilla that was intercepted in June. The climate activist said she had been «kidnapped» by Israel, a comment that drew scrutiny from those who pointed out the plight of the hostages who have been held in Gaza since Oct. 7, 2023.
The activist was later deported from Israel and allegedly told attorneys she could do «more good outside of Israel,» and that refusing to leave would «harm our cause,» The Times of Israel reported, citing a spokesperson for Adalah, a legal center for Arab minority rights in Israel. Adalah now represents GSF, a more recent attempt to reach Gaza.
In June, when asked about Thunberg’s claim that she had been «kidnapped» by Israel, President Donald Trump said, «I think Israel has enough problems without kidnapping Greta Thunberg.» The president called the climate activist a «strange person» and told reporters that she needed «anger management» courses.
israel,world,middle east
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