NEW CBO REPORT SHOWS HEALTH PRICE SPIKES, COVERAGE LOSS WILL WORSEN IF REPUBLICANS FAIL TO ACT ON ACA TAX CREDITS

The following information was released by Rhode Island Senator Jack Reed:

The Trump Administration's policies, regulation, tariffs, and legal changes are making health coverage less affordable for millions of Americans and have resulted in the steepest health premium increases in 15 years for Americans with employer-sponsored insurance.

U.S. Senator Jack Reed says it is imperative for Republicans to help reverse President Trump's health care price hikes on Americans as a new report from the nonpartisan Congressional Budget Office (CBO) shows 3.8 million more people will lose health insurance coverage if Republicans continue to reject Democrats' proposal for the end of the year budget. Altogether, around 15 million people will lose health coverage in the coming decade because of the Trump Administration's health cuts and inaction.

"First President Trump enacted the largest cut to health care in U.S. history and now he's driving up the cost of health care for even more Americans. Congress must urgently act on a bipartisan basis to lower costs, prevent these premium price hikes, and offer some much needed financial relief to hardworking Americans who are getting squeezed by Trump's tariff taxes. This new CBO report underscores the urgent need for Congress to act before Americans in all fifty states are hit with double digit price increases for their health care. Democrats aren't asking for anything new or unreasonable here, just an extension of bipartisan, lifesaving tax credits to ensure millions of Americans can afford to see a doctor," said Senator Reed.

The findings from CBO include:

If Congress fails to act to extend the ACA tax credits before September 30, there will be unavoidable premium spikes and coverage losses in 2026 even if the tax credits are extended at a later date.

Failure to extend ACA tax credits would cause an increase of premiums by 7.6 percent for the over 20 million people who buy coverage on the ACA Marketplace over the budget window.

Repealing the provisions of the Trump administration ACA rule would protect ACA coverage for 1.8 million people, and reduce out-of-pocket costs for everyone with ACA coverage. CBO's estimates reflect the current court stay on the rule.

Repealing the ACA cuts in the Republican reconciliation bill would protect coverage for 2.9 million people who buy their own insurance on the ACA Marketplace.

The Republican attacks on the ACA this year inject uncertainty into insurance markets across the country that will make premiums more volatile and make it more complicated for working people to enroll and remain enrolled in affordable coverage.

The latest estimate from CBO brings the total Republican health care cuts to nearly $2 trillion, between the reconciliation bill, failing to extend the ACA tax credits, and actions by the Trump administration. 15 million Americans will lose their health insurance, including 7 million losing coverage through the Affordable Care Act. That number could grow pending court action.

The analysis comes as boosted tax credits for Americans who buy health insurance on their own are due to expire at the end of 2025.

Democrats are warning that the time for action is now: open enrollment to purchase health insurance under the ACA begins on November 1st. If the tax credits are not extended, Americans will see significantly higher premiums and deductibles and many will be deterred from shopping further.

Republicans' refusal to mitigate this premium crisis is amplified by the Trump Administration's rulemaking and Republicans' budget bill. Trump's ACA rule, parts of which are currently blocked by the courts, will ensnare Americans who buy their own insurance in red tape, increase their health care costs, and let insurance companies offer worse quality coverage, while CBO's analysis confirms Trumpcare cuts hundreds of billions from the ACA that will bury people seeking affordable health care coverage in red tape.