December 17, 2025
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National Taxpayers Union, the nation’s oldest taxpayer advocacy organization, urges all members to vote “NO” on any and all legislation that would extend the enhanced Obamacare subsidies. Initially enacted as an emergency measure by President Biden in the American Rescue Plan Act of 2021, these enhanced subsidies funnel taxpayer dollars directly to insurance companies. This expensive giveaway continues to burden taxpayers and distort health care markets. These subsidies were never meant to be permanent, and Congress should let them expire as scheduled at the end of the year.
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.
Since 2013, premiums for the typical individual Obamacare plan have more than doubled, leaving patients with higher costs and fewer choices. Without any safeguards, such as minimum premium payments or income caps for eligibility, this three-year extension would simply continue padding the profits of large insurance companies while doing nothing to slow the growth of health care spending.
Instead of throwing more money at failed policies, lawmakers should consider enacting structural reforms that actually increase competition to lower costs for patients. By promoting transparency and choice in health care, the Lower Health Care Premiums for All Americans Act would lower premiums for the most common Obamacare plans, as well as for employer-sponsored coverage. According to the CBO, that bill would lower gross benchmark premiums by 11%, on average, through 2035.
Roll call votes on any legislation to extend the subsidies 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.