December 10, 2025
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National Taxpayers Union, the nation’s oldest taxpayer advocacy organization, urges all members to vote “NO” on S. 3385, the Lower Health Care Costs Act. This legislation would authorize a three-year extension of the Enhanced Premium Tax Credits (EPTC) that were initially enacted by President Biden in the American Rescue Plan Act of 2021. Originally created as a temporary emergency measure during the pandemic, this expanded credit funnels federal funds directly to health insurance companies and continues to burden taxpayers and distort health care markets. This tax credit was never meant to be permanent, and Congress should let it lapse as scheduled at the end of 2025.
The title of this bill is a masterclass in misnaming expensive legislation. Subsidies to insurance companies shield consumers from the true cost of coverage, which only drives costs higher. Keeping premiums artificially low does not reduce the actual cost of care. It simply shifts the burden onto taxpayers while allowing insurers to maintain or raise rates without meaningful competition. Without any safeguards such as minimum premium payments or income caps for eligibility, this legislation would simply continue padding the profits of large insurance companies while doing nothing to slow the growth of health care spending.
These enhanced tax credits effectively scrapped the income cap for Obamacare subsidies. This means even high-earning families making six figures—or more than half a million dollars in some cases—can get taxpayer help with their health insurance. Even individuals pulling in over $250,000 qualify. For all of its many flaws, Obamacare was meant to help struggling Americans afford coverage, not hand out benefits to the wealthy.
These expanded subsidies are also rife with fraud and abuse. A shocking new study published just last week by the Government Accountability Office (GAO) highlights how structural flaws in Obamacare allow fake identities, misused Social Security numbers, and even dead people to receive taxpayer-funded subsidies. Extending these tax credits would simply fuel more fraud.
The implications of this bill for taxpayers are bleak. According to the Congressional Budget Office (CBO), this single piece of legislation would add over $83 billion to the federal deficit through 2030. Our deficits already hover near $2 trillion annually, and interest on the national debt consumes about 13% of the entire U.S. federal budget. Continuing this costly handout would be yet another blow to the nation’s already strained finances.
Health care remains a highly salient political issue heading into the 2026 midterms, and it’s perfectly understandable Congress wants to take action on this matter. The solution to rising health care costs isn’t more subsidies that insulate consumers from prices, but instead empowering patients to control their own spending. Health Savings Accounts are an effective tool that allows people to set aside tax-advantaged funds to cover medical expenses. By letting individuals see and manage their own funds, this approach incentivizes more prudent health care spending.
Roll call votes will be included in NTU’s annual Rating of Congress and “NO” votes will be considered the pro-taxpayer position.
If you have any questions, please contact NTU Policy and Government Affairs Manager Alexander Ciccone at aciccone@ntu.org