Millions of Americans may soon face higher health care costs as a new Republican proposal attempts to unwind years of costly Obamacare-era subsidies that experts say have distorted the insurance market and driven premiums sky-high.
Senator Bernie Moreno of Ohio is co-leading the Consumer Affordability and Responsibility Enhancement (CARE) Act, a plan that temporarily extends certain ACA tax credits—but also begins phasing out the massive, pandemic-era giveaways Democrats pushed through Congress. Those subsidies helped more than 24 million Americans sign up for Obamacare in 2025 alone, many paying $0 per month for coverage.
Now those days are ending.
GOP Bill Ends $0 Premium Plans and Closes Loopholes
The CARE Act would require every enrollee to pay at least $25 per month, ending the $0 premium system that critics say led to fraud, abuse, and big profits for insurance companies. The bill also cuts off subsidies once household income exceeds $200,000, ensuring taxpayer-funded benefits aren’t flowing to high-income families.
Moreno says Democrats created the mess—and now refuse to fix it.
“This crisis was built by Obama and the Democrats, who handed huge profits to big insurance companies while ordinary Americans watched their healthcare bills explode,” Moreno said. “I’m not going to stand by and let families keep suffering because of the Democrats’ failures.”
Conservatives argue the CARE Act is a first step toward restoring fairness and accountability to the health care marketplace. But opponents warn it could create short-term pain for families already struggling with rising medical costs.
Experts Warn Millions Could See Premium Shock
Financial expert Michael Ryan told Newsweek the proposal may lead to higher premiums if Congress allows the enhanced Obamacare subsidies to expire.
“To put it simply, the proposal cuts federal subsidies and shifts more of the cost onto consumers,” he said. “That burden falls heaviest on middle-class families and older Americans, particularly in states where ACA coverage is their only real choice.”
This is a major risk for Americans aged 50 to 64, who already pay some of the highest premiums in the country.
Senator Susan Collins of Maine acknowledges the stakes, saying many families are already stretched thin.
“We need practical solutions that increase affordability without sudden disruptions,” she said. “This bill helps prevent unaffordable premium spikes while ensuring subsidies go to the people who truly need them.”
Critics Say Washington Is Playing Politics
Even analysts who support reforming Obamacare caution that Congress may lack the will to enact a long-term fix. Ryan called the current political climate “low-functioning,” predicting yet another cycle of brinkmanship and last-minute negotiations.
Financial instructor Alex Beene echoed that concern. If ACA tax credits vanish overnight, millions could face unaffordable out-of-pocket costs or lose coverage entirely.
Kevin Thompson, CEO of 9i Capital Group, said phasing out subsidies for high earners makes sense—but warned the bill offers no clear replacement for the expiring credits.
“Without a credible alternative, this hits families hard,” he said. “The chances of this plan passing are slim to none.”
Bottom Line: Health Care Costs Are Rising, and Washington Still Has No Real Fix
Whether the CARE Act advances or not, Americans already know the truth:
Health care is becoming more expensive every year, and Congress has failed to deliver meaningful relief.
Republicans say they are trying to unwind the damage caused by years of Democrat policies. Critics fear premiums will surge before new reforms take effect. And millions of families—especially seniors and pre-Medicare adults—are left wondering how much more they will be expected to pay.
In today’s economy, even small premium increases can break a budget.
And unless Washington finds real solutions, Americans could soon face even more painful choices about their health care.