House Budget Committee Chairman Jodey Arrington (R-Texas) has renewed his call for Republicans to oppose the extension of what he describes as "fraud-ridden" Obamacare subsidy expansions. In an op-ed published by the Washington Examiner, Arrington praised House Republicans for passing the Lower Health Care Premiums for All Americans Act, which he says will lower health care premiums by 11 percent, expand access to affordable coverage, and increase transparency in the health care system while saving taxpayers $36 billion.
Arrington criticized Democratic policies on health care, stating:
"Long before Democrats created the worst cost-of-living crisis in a half century, they gave us the 'Unaffordable Care Act.' Their attempt at central planning 20 percent of the U.S. economy resulted in a government-dominated health care system that is unaffordable and unsustainable. Now, they are demanding Republicans bail them out by extending their COVID-era, fraud-ridden Obamacare subsidy expansion."
He further argued that enhanced premium tax credits introduced during the COVID-19 pandemic have become permanent and now provide subsidies to households with incomes up to $600,000. Arrington claimed this leads to millions of ineligible enrollees and plans with no premiums that shift costs onto taxpayers.
Citing findings from federal agencies, Arrington said:
"According to the Government Accountability Office, waste, fraud, and abuse are the norm, not the exception, in Obamacare. Fake identities, deceased individuals, and stolen Social Security Numbers (SSNs) are routinely approved for subsidized coverage. Nearly 60,000 SSNs receiving Obamacare subsidies were deceased individuals."
He also referenced data from the Joint Economic Committee:
"Furthermore, the Joint Economic Committee found for every dollar consumers save, two dollars are lost to waste or the wallets of insurers and their middlemen."
Arrington called extending these subsidies "fiscal malpractice on a staggering scale," adding that premiums have increased by 80 percent since Obamacare was enacted and deductibles often exceed $5,000 while one-fifth of claims are denied.
Reflecting on past Republican efforts to repeal Obamacare in 2017 that failed in the Senate, Arrington stated:
"In 2017, my first year in Congress, Republicans came close to repealing Obamacare... We tiptoed around the monopoly forces of Big Medicine—insurers, Pharmacy Benefit Managers (PBM), Big Pharma, and the hospital giants—while Democrats pushed us closer to government-run, socialized health care."
He credited former President Trump with leading reforms that targeted waste and high drug prices:
"Thanks to President Trump’s leadership... The President has rightly called out the 'big, fat, rich' insurance companies and taken on foreign nations over unfair drug pricing."
The new legislation passed by House Republicans aims to lower premiums by addressing incentives for insurance companies to raise rates. It seeks to create more competition among insurers by allowing small businesses greater flexibility in choosing coverage options. The bill also targets pharmacy benefit managers by increasing transparency in drug pricing.
Arrington suggested additional reforms such as expanding Health Savings Accounts and implementing site-neutral payment reforms for hospitals as ways to further reduce costs.
He concluded:
"For Republicans, this is a defining moment. We can cower to political pressure or we can stand tall and confront this crisis. What we do next will determine whether we are truly committed to making health care more affordable. It is time to drain the Swamp’s health care racket and finally Make America Healthy Again."
The passage of this act marks an effort by House Republicans to implement changes they argue will reduce costs without providing further subsidies or bailouts for insurers.
