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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
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Trump DOJ opens mortgage fraud probe into Eric Swalwell as congressman vows to keep fighting back
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The Department of Justice under President Donald Trump has opened a probe into Rep. Eric Swalwell, D-Calif., over alleged mortgage fraud, Fox News has confirmed.
In response, Swalwell said he was not surprised to be targeted by Trump and vowed to keep speaking out while pursuing his lawsuit.
«As the most vocal critic of Donald Trump over the last decade and as the only person who still has a surviving lawsuit against him, the only thing I am surprised about is that it took him this long to come after me,» the California lawmaker said.
«Like James Comey and John Bolton, Adam Schiff and Lisa Cook, Letitia James and the dozens more to come – I refuse to live in fear in what was once the freest country in the world.
SWALWELL THREATENS ‘ACCOUNTABILITY’ TO PRIVATE ACTORS WHO DEAL WITH TRUMP, HOPE IT ‘DETERS PEOPLE’
Rep. Eric Swalwell, D-Calif., listens during a news conference on the introduction of their Protection from Abusive Passengers Act at the U.S. Capitol Building on April 6, 2022, in Washington, D.C. (Anna Moneymaker/Getty Images)
«Of course, I will not end my lawsuit against him. And I will not stop speaking out against the President and speaking up for Californians,» he continued. «As Mark Twain said, ‘Patriotism is supporting your country all the time, and your government when it deserves it.’ Mr. President, do better. Be better.»
The probe, which was first reported by NBC, will investigate allegations of millions of dollars in loans and refinancing were based on Swalwell declaring that his primary residence was in Washington, D.C., a person familiar with the referral told the news organization.
According to the report, the director of the Federal Housing Agency, Bill Pulte, sent Attorney General Pam Bondi a letter on Wednesday accusing Swalwell of possibly making false or misleading statements on loan documents.
HOW JAMES COMEY’S INDICTMENT COULD GO SOUTH FOR THE DOJ
The source also reportedly told NBC the investigation is into possible mortgage fraud, tax fraud at the state and local level, insurance fraud and any related crimes.
Fox News Digital has reached out to the Department of Justice for comment on the matter.
The news comes the same day that MSNBC reported that two sources confirmed Swalwell is looking at a run for governor in California.
The two sources reportedly told the news agency Swalwell has all but decided on the move, and one source even said the lawmaker could make an announcement as early as next week.
Fox News Digital has reached out to Swalwell’s office for confirmation on the matter.
MSNBC reported that Swalwell declined to comment on his gubernatorial ambitions.
SWALWELL, NEHLS CLASH AT CHILD MIGRANT HEARING OVER ALLEGED CHINESE SPY TIES: ‘YOU DON’T GET TO SAY THAT S—‘
Representative Eric Swalwell, D-Calif., was criminally referred to the DOJ for alleged mortgage fraud. (John Lamparski)
Swalwell has been one of Trump’s most outspoken critics, and last month he faced scrutiny over a «bizarre inconsistency» in his campaign’s Federal Election Commission filings that list several different reasons for payments to a Haitian American staffer totaling more than $360,000.
FEC filings from Swalwell for Congress and his Remedy PAC, dating back to 2021, show more than 75 payments to staffer Darly Meyer, ranging from $53 to more than $12,000 for various reasons.
Meyer received 27 payments last year totaling more than $120,000 and is on pace to earn a similar amount in 2025. The filings list multiple explanations for the disbursements, including travel, car and security services, and salary, as well as reimbursements for personal travel expenses, event flowers, and postage.
Over the years, Swalwell’s campaign has reported numerous expenditures on luxury car services, expensive restaurants, and high-end hotels in international cities such as Dubai, Berlin, Paris and London.
Swalwell also claimed there was strong evidence of collusion between Russia and Trump, but those claims have since been contradicted.
Durham’s report, released in 2023, found intelligence agencies lacked «actual evidence of collusion» to justify launching the Trump-Russia probe. The findings echoed Robert Mueller’s 2019 report, which found no criminal conspiracy between Trump’s campaign and Russia.
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This is a developing story and will be updated as more information becomes available.
eric swalwell,justice department,donald trump,investigations
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Panorama Internacional: Chile, elecciones con sorpresa y las deudas pendientes del 2019
Franco Parisi, Jeannette Jara, Marco Enriquez-Ominami, Johannes Kaiser, Jose Antonio Kast, Eduardo Artes, Evelyn Matthei y Mayne-Nicholls. Foto Reuters
Manifestantes ondean una bandera chilena durante una protesta contra el gobierno de Chile en Santiago de Chile, el 30 de diciembre de 2019. Foto ReutersINTERNACIONAL
El acuerdo con EE.UU. selló el alineamiento de Milei con Trump, pero abrió interrogantes en el Mercosur
El acuerdo sobre comercio e inversiones anunciado entre Estados Unidos y la Argentina selló a fuego el total e inflexible alineamiento del gobierno de Javier Milei con Donald Trump, pero al mismo tiempo abrió una serie de interrogantes sobre cómo impactará este entendimiento en el futuro del Mercosur y la relación con Brasil.
No por nada el acuerdo se conoció en la misma semana que desde la Cancillería se anunció que Milei se ausentará de la futura cumbre del bloque prevista en diciembre en Foz de Iguazú, donde Lula da Silva entregará a Paraguay la presidencia pro-tempore del bloque.
Leé también: Punto por punto, todos los detalles del acuerdo comercial entre la Argentina y EE.UU.
El estatuto del pacto regional impide a los países miembro suscribir acuerdos comerciales en forma individual. Milei, como lo hizo el anterior gobierno de Uruguay de Luis Lacalle Pou, busca hacer más elásticas estas disposiciones y abrir el pacto.
“La Argentina no puede negociar bilateralmente ni hacer acuerdos por su cuenta. Pero esto es un acuerdo marco que el gobierno puede presentar como exploratorio”, dijo a TN el analista internacional Mauro Embe.
El Gobierno cuidó mucho las formas de este acuerdo. La Casa Blanca lo anunció a través de “una declaración conjunta sobre el marco para un acuerdo entre Estados Unidos y la Argentina sobre comercio e inversión recíprocos”. No se habló de un acuerdo comercial.
“Así puede manejar en cierta forma los tiempos”, indicó el analista.
¿Cómo reaccionarán los demás socios del Mercosur?
El gobierno tiene como gran aliado dentro del bloque al presidente paraguayo, Santiago Peña, con quien Milei tiene un aceitado vínculo por su estrecha afinidad ideológica. Ahora se suma Rodrigo Paz, flamante mandatario de Bolivia, el último país en incorporarse al bloque.
En la vereda de enfrente se encuentra en especial Luiz Lula da Silva, némesis de Milei en el Cono Sur, y el más pragmático mandatario progresista uruguayo, Yamandú Orsi. Luiz Inacio Lula da Silva y Javier Milei se vieron en Buenos Aires en la última cumbre del MERCOSUR (Vía Reuters)
“Lo que ha hecho el gobierno argentino es medio border. Está en el límite dentro de lo legal (que marca el estatuto del Mercosur). Esto podría generar una queja interna ante este avance unilateral”, dijo Embe.
Para el analista, “este acuerdo marco podría transformarse en un tratado, aunque en ningún lado se habla de un pacto de libre comercio. Lleva a futuros acuerdos. Fueron muy cautos en el nombre en este acuerdo marco para favorecer inversiones”, afirmó.
Leé también: Ser obeso o tener un hijo con discapacidad podría ser un motivo de rechazo de la visa para ingresar a EE.UU.
Ahora se abre un período de negociaciones en el seno del bloque. Si bien aún no fue definida una fecha de la cumbre, se estima que podría celebrarse el 20 de diciembre con las notorias ausencias de Milei y de Peña.
Cómo impactará el acuerdo con EE.UU. en la relación con Brasil
En este nuevo escenario no cabe duda de que el anunciado acuerdo entre Argentina y EE.UU. impactará de manera negativa en el difícil vínculo entre Buenos Aires y Brasilia.
“El primer impacto inmediato es el debilitamiento del Mercosur. Los acuerdos puntuales de país a país debilitan al bloque. Pero además, en función del conflicto que enfrenta a Brasil con EE.UU. en materia arancelaria, esto desgasta aún más la relación entre Milei y Lula que ya no era buena pero permanecía” sin cambios en el terreno comercial, dijo a TN el analista brasileño Marco Teixeira, de la Fundación Getúlio Vargas, de Río de Janeiro.
Leé también: Uruguay sufre una epidemia de homicidios: crece la inseguridad vinculada al narcotráfico
El acuerdo se sumará así a la anunciada ausencia de Milei de la cumbre del Mercosur en la que Brasil deberá traspasar la presidencia pro-témpore a Paraguay y donde espera anunciar el postergado tratado comercial con la Unión Europea (UE).
¿Qué pasará ahora con el Mercosur?
Milei cumplió el mandato de alinear a su gobierno detrás de la Casa Blanca en absolutamente todos los aspectos.
“Este es un punto más en el alineamiento total con EE.UU. Por supuesto esto tiene un precio. Más allá de la afinidad ideológica, Milei reduce la maniobrabilidad en ciertos sectores. Cuando un país se alinea tanto con una gran potencia cualquier margen de maniobra o pragmatismo se agota o se reduce”, dijo Embe.
En este contexto, el Mercosur está llamado a sufrir en los próximos 30 días fuertes turbulencias.
El analista internacional Juan Negri dijo a TN que la firma de este entendimiento con Washington “es una prueba más del estancamiento del bloque regional, de la incapacidad de adaptarse a nuevas realidades y de las visiones distintas que imperan en el interior del bloque”.
“El Mercosur se encuentra en una encrucijada. Tiene una estructura que le hace muy difícil reformarse porque tienen que estar todos los socios de acuerdo. Es un bloque agujereado que entra en tensión cada vez que en la Argentina y Brasil asumen gobiernos de derecha”, afirmó.
EE.UU, comercio
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