Democrats Exploit Healthcare Subsidy Deception to Win Public Favor

By Steve Levy
Wednesday, 15 October 2025 02:26 PM EDT

The present federal government shutdown was clearly orchestrated by Senate Minority Leader Chuck Schumer, D-N.Y., to demonstrate his willingness to challenge President Donald Trump and counter a potential primary threat from Rep. Alexandria Ocasio-Cortez, D-N.Y. Democrats have framed the shutdown as a fight to extend Obamacare subsidies introduced during the COVID-19 pandemic. They claim Republicans in the Big Beautiful Bill (OBBBA) eliminated these subsidies, but this is misleading. Republicans retained pre-pandemic subsidies while allowing temporary COVID-era funding to expire as planned.

Democrats currently dominate the public relations narrative, with polls showing broad support for extending healthcare subsidies. However, many voters are unaware that the subsidies in question apply only to the short-term pandemic-related funding. While Republicans remain firm against funding healthcare for illegal immigrants, they may be open to compromise on Obamacare reimbursements. This could lead to positive reforms, enabling the GOP to introduce practical improvements to the system.

The failure of Republican healthcare alternatives has long been a challenge. Despite acknowledging Obamacare’s high costs and inefficiencies, Republicans lacked a clear plan to replace it. The 48 million previously uninsured Americans prioritized coverage over technicalities, granting Democrats credit despite the program’s unsustainable structure. Premiums have risen from an average of $13,000 to $24,000 since its inception, yet the public perception remains skewed.

Republicans have proposed ideas to reduce costs and expand coverage but struggled to present a unified vision. To prevent Democrats from securing additional subsidies without reforms, Republicans must push for systemic improvements. Solutions include addressing defensive medicine practices, which contribute to high insurance rates, and reforming risk pools to stabilize premiums. These measures are critical to ensuring the sustainability of any healthcare system.

The ACA’s affordability issues were long warned about by Republicans, who argued it would drive up costs for taxpayers and insurers. Continued reliance on annual subsidy increases risks collapse. Now is the moment to prioritize efficiency, as Democrats appear open to negotiation. Steve Levy is Executive Director of the Center for Cost Effective Government, a fiscally conservative think tank. He served as Suffolk County Executive, as a NYS Assemblyman, and host of “The Steve Levy Radio Show.” Read more of Steve Levy’s reports — here.

Opinion