Republicans are pushing hard to promote their success with their budget and policy bill. Yet besides piling up enormous tax cuts for the wealthiest individuals and corporations, the bill will explode the nation’s deficit by trillions of dollars. Regular folks will bear the brunt of paying for Congress’s debt spree, while also experiencing the blow of handling a major cost hike in a fundamental part of their personal budgets: the cost of health insurance.
Republicans historically have bitterly opposed any government role in health care, including the cost of insurance to deal with it. This led them for decades to oppose Medicare, Medicaid, and to wage 15 years of extreme battles against the Affordable Care Act (ACA) or Obamacare.
Obamacare, as imperfect as it may be, has grown increasingly popular. Its 24 million enrollees in 2025 set a record, as the rates of the uninsured in this country also have plunged to new lows. Patients have embraced crucial components of the ACA, including how it keeps insurers from barring coverage over pre-existing conditions and allows parents to keep older children on their plans. Patients have understood that Obamacare also kept younger, healthier people in its plans, meaning that sicker, older folk would not be isolated and forced into unaffordable policies. Having coverage has meant that patients benefit from lower costs for medical care, as insurers negotiated better prices with providers for their customers. Insurance, of course, plays a basic role in spreading bankrupting costs among a larger group, rather than having them fall just on one person.
The previous administration, as part of its battle against the economic damages of the pandemic and then to increase employment under an infrastructure act, enhanced federal support for those seeking Obamacare coverage on public exchanges. But that aid has expired.
Consumers will be slammed quickly by the GOP’s eliminating ACA subsidies and outreach and support efforts, the Wall Street Journal reported:
“Insurers are seeking hefty 2026 rate increases for Affordable Care Act marketplace plans, the coverage known as Obamacare. Blue Cross & Blue Shield of Illinois wants a 27% hike, while its sister Blue Cross plan in Texas is asking for 21%. The largest ACA plans in Washington state, Georgia and Rhode Island are all looking for premiums to surge more than 20%. The companies say the big increases are needed because of higher health care costs and changing federal policy, including cuts to subsidies that help consumers pay for plans. The higher premiums would come after years of enrollment growth and mostly single-digit rate increases in the Obamacare market, where individuals and families buy insurance for themselves.”
Republicans not only declined to extend the ACA support, they cut off funds for public outreach for Obamacare (informing the public about its availability and explaining various offerings in states), and they have added more eligibility hurdles for ACA policies. As an online posting by the Johns Hopkins Bloomberg School of Public Health reported of the new ACA requirements:
“Enrollees will need to update information around their income, immigration status, and other details every year, or risk losing coverage. Plans are no longer automatically renewed. Individuals will have to manually re-enroll every year during open enrollment. Last year, 10 million people were automatically re-enrolled. The open enrollment period has been shortened by a month—now ending Dec. 15, rather than Jan. 15. For the current plan year, 40% of people signed up after Dec. 15. New enrollees—including those who enroll outside of open enrollment due to a life event or income change—will need to prove eligibility before they can receive subsidies that help offset the cost of their monthly premium. This is a change from the current policy, which allows applicants to get up to 90 days of premium assistance during the application process.”
Most Americans get their health insurance coverage via their jobs. And costs for this will spike starting next year, analysts say. Employers have resisted passing on rising medical care costs but will be less inclined to do so in 2026, as they have seen these increases: 4.5% in 2024, 6% this year, and an anticipated 8% next year. Companies complain that providers are experiencing such uncertainty — due in a big way to effects of the GOP big bill — combined with increasing demand, notably for expensive weight-loss medications, that they must act. Patients previously have seen such pass-throughs include not only premium hikes but also spikes in deductibles, the sums they must pay out-of-pocket before their coverage kicks in.
The total average premium for employer-provided health coverage for a family of four hit more than $25,000 in 2024, with workers paying a $6,000 share of that average, analysts say. That price has become increasingly unaffordable, especially for lower- and middle-class and poor workers, who skip coverage or take on such high deductibles that they essentially forgo care because they can’t pay out-of-pocket, upfront medical costs.
Policy experts fear that GOP slashes to federal health care programs will lead to nightmarish problems for hospitals, especially in rural areas. Medical facilities fear they will need to provide more uncompensated care, while seeing their revenues and profit margins decrease. Government cuts in Medicaid and other programs will cause an estimated 300 rural hospitals, which already were struggling to get by, to shut. This will force the sick or injured in rural areas to travel long distances for treatment, an especially pricey prospect for those requiring emergency care and air ambulance services. As patients struggle with health coverage (Medicaid and Obamacare) and uninsured rates spike, those ill and injured who cannot skip care will head to already overcrowded emergency rooms for expensive treatment. Further, along with other cuts in federal medical programs, the GOP slashed the “provider tax,” which Time magazine has reported on:
“Our health care system is like a chain of dominoes. ERs, hospitals, and nursing homes are all connected, and the provider tax is one of the critical links holding it all together. It’s a tool used by 47 states to fund Medicaid, the program that provides health care coverage for millions of Americans, both children and seniors. Hospitals pay into this tax. States use it to unlock Medicaid dollars. Those combined funds then flow back into the system, helping keep ERs staffed, hospital beds available, and nursing homes running. Most people aren’t aware of the provider tax, but it’s why your local hospital can treat you and your family, whether you have private insurance or none at all. [The GOP cut] to this tax might look and sound like a simple budget trim. In reality, it’s a wrecking ball. It will slash federal funding, leaving hospitals and nursing homes scrambling.”
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