Comment: GOP inflating health care costs for its own voters - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Meet our Editorial Staff
    • Advertise
    • Contact
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Health/Employee Benefits News
Newswires RSS Get our newsletter
Order Prints
September 2, 2025 Newswires
Share
Share
Post
Email

Comment: GOP inflating health care costs for its own voters

The Daily Herald

By Mary Ellen Klas / Bloomberg Opinion

Unless the Trump administration and Republicans in Congress act quickly, millions of working Americans could lose access to their health insurance at the end of this year. Among the most affected will be small businesses and middle-income earners; many of whom, ironically, live in congressional districts that vote Republican.

An estimated 4.7 million small business owners and self-employed workers relied on the Affordable Care Act Marketplace to obtain health insurance in 2023, according to the latest figures from the Treasury Department. But the tax credits these businesses use to offset their health insurance costs are set to expire at the end of December; and neither the Trump White House nor Republicans in Congress are poised to do anything about it.

That will inflict real pain on millions of Americans and hand Democrats an issue they can use to bludgeon Republicans in the midterms. Health care remains one of Democrats' few potent weapons.

The reason for the December deadline is that, in 2021, Congress raised the income levels of people who could receive the enhanced tax credits at the urging of President Joe Biden. The Inflation Reduction Act extended the subsidies until 2025. The changes came with a hefty federal price tag — estimated at $335 billion over 10 years — but they also led to record-high enrollment in the ACA Marketplaces. In 2024, more Americans had health insurance than ever before.

Unfortunately for Biden, most of the public heard little about this program, according to KFF, a nonprofit health policy research organization. Half of the recipients are not even aware their health insurance is subsidized with federal dollars.

And many of the beneficiaries are Republican. According to a review by KFF, 56% of ACA Marketplace enrollees live in congressional districts represented by Republicans and 76% of enrollees are in states won by President Donald Trump in the 2024 election.

Should the credits disappear, states will see a $34 billion reduction in state gross domestic product, lose an estimated 286,000 jobs — nearly half of them in hospitals, doctors' offices and pharmacies — and state and local tax revenue will decline by $2.1 billion, according to a report released in March by the Commonwealth Fund and the George Washington University Milken Institute School of Public Health.

The hardest-hit states would be those that have not expanded Medicaid, where residents depend more on marketplace subsidies — Alabama, Florida, Georgia, Indiana, Mississippi, South Carolina, Tennessee, Texas, Wisconsin and Wyoming. All voted for Trump in 2024.

For the people who rely on the subsidies, the impact will be immediate, painful and disruptive. Out-of-pocket premiums for ACA marketplace enrollees will increase by an average of more than 75%, according to an estimate by the Petersen-KFF Health System Tracker. Middle-income families (calculated as $103,280 for a family of three) will lose up to $5,370 a year in premium tax credits, forcing many to go uninsured.

"There's not a lot of gray area here,'' said Mary Mayhew, CEO of the Florida Hospital Association. "We will see our uninsured rates increase significantly for individuals who are largely working."

Mayhew is the former secretary of the Florida Agency of Health Care Administration, the former commissioner of the Maine Department of Health and Human Services, and worked in the first Trump administration's Medicaid office before coming to Florida. For years, she fiercely opposed the expansion of Medicaid under Obamacare, arguing that the federal government shouldn't be involved in subsidizing private insurance.

Now, as head of Florida's largest hospital association, Mayhew has changed her mind. Her association has teamed up with other business groups to form Florida Conservatives for Affordable Care, a coalition lobbying Congress to extend the subsidies.

"It really does come down to, if not this, then what?'' Mayhew told me. "The market has changed" and without the federal program, it would be "incredibly difficult for a small business to purchase health insurance coverage for their employees."

The about-face over the ACA from many business groups is striking, but their argument is no surprise, said Leighton Ku, director of the Center for Health Policy Research at the George Washington University Milken Institute School of Public Health. The marketplaces were designed to appeal to conservatives by allowing people to buy health insurance through private plans.

Since 2014, when the marketplace launched, the ACA has halved the number of people without insurance, according to the most recent data. Businesses now have the flexibility to hire part-time and seasonal workers who can qualify for individual coverage. Entrepreneurs, early retirees and young adults are guaranteed coverage; and often receive it with federal subsidies depending on their income level.

Mayhew says she is urging Congress to "set aside the polarizing politics of the Affordable Care Act" and realize that small businesses are in better shape now than they were 15 years ago because they have better access to health insurance.

"You can't simply be 'no' to everything,'' she says. "This is working."

That's good advice. Will Republicans take it? If not, they may be handing Democrats a Christmas gift.

Mary Ellen Klas is a politics and policy columnist for Bloomberg Opinion. A former capital bureau chief for the Miami Herald, she has covered politics and government for more than three decades. ©2025 Bloomberg L.P., bloomberg.com/opinion. Distributed by Tribune Content Agency, LLC.

Older

Continental General Announces Recapture of Block of Kanawha Life and Long-Term Care Policies

Newer

From Powell’s Speech to Cook’s Removal

Advisor News

  • How smart investments prepare clients for inflation
  • Amid slew of corporate tax ideas, Newsom chose one likely to hit people’s premiums
  • The biggest risk to your clients’ financial plans isn’t market volatility
  • Initiative looks at how caregiving impacts workplace benefits
  • Will rising retirement needs spark an annuity boom?
More Advisor News

Annuity News

  • Globe Life Inc. (NYSE: GL) Records 52-Week High Thursday Morning
  • Fortitude Re Completes $500 Million FABN Issuance
  • Reframing retirement income for greater certainty
  • Jackson Introduces Dow Jones Industrial Average Index Option, Flexible Premiums, Six-Year Rate Guarantee in Latest Registered Index-Linked Annuity Launch
  • Senior Market Sales® Fortifies Annuity Reach With Acquisition of Retirement Planning Firm Stratton & Company
More Annuity News

Health/Employee Benefits News

  • Politicians, consumers blast health insurers’ requests for double-digit rate hikes. What to know.
  • Final rules for Medicaid work requirements are out. Here's what you need to know.
  • Final rules for Medicaid work requirements are out. Here's what you need to know.
  • Hyde-Smith blasts health care delays
  • WNY health insurers seek rate hikes of 9% to 24% for 2027
More Health/Employee Benefits News

Life Insurance News

  • AM Best Affirms Issue Credit Ratings of Weston2038 LLC’s Credit-Linked Notes
  • Globe Life Inc. (NYSE: GL) Records 52-Week High Thursday Morning
  • Greg Lindberg moves to halt $1.65B restitution order, claims he ‘overpaid’
  • Fidelity Investments® to Expand Target Date Lineup With Launch of Guaranteed Income Solution
  • KBRA Releases Research – Private Credit: Much Ado About Nothing – Perspectives on Columbia Business School Paper About Private Ratings
More Life Insurance News

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Maximize Your FIA Case Results
Learn a repeatable process to review, reposition, and present FIA opportunities with confidence.

Aim higher during Annuity Awareness Month
Raise the bar with our diverse portfolio of Ascend annuities, backed by superior financial strength

You Could Be Losing Up to 20% of Your Commissions
GreenWave helps you find, fix, and prevent commission errors.

True Independence Means Having Choices
Cambridge offers flexibility, stability, proven tools—no private equity strings attached.

Life moves fast. Your BGA should, too.
Stay ahead with Modern Life's AI-powered tech and expert support.

Looking for stronger rates, amplified growth & real results?
Sentinel's Accumulation Protector Plus℠ Annuity is for clients wanting more from retirement planning

Press Releases

  • Senior Market Sales® Fortifies Annuity Reach With Acquisition of Retirement Planning Firm Stratton & Company
  • RFP #T01625
  • Rockwood Programs Appoints Kerry Ladouceur as Vice President, Financial Lines
  • JP Insurance Group Launches Commercial Property & Casualty Division; Appoints Joe Webster as Managing Director
  • Sequent Planning Recognized on USA TODAY’s Best Financial Advisory Firms 2026 List
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Meet our Editorial Staff
  • Advertise
  • Contact
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.
Insurance News | InsuranceNewsNet