Healthcare Costs: A New Republican Plan Sparks Debate

A new proposal from Republicans might lead to higher healthcare costs for many Americans. The CARE Act, introduced by Senator Bernie Moreno, aims to extend ACA Premium Tax Credits temporarily and gradually phase out COVID-era subsidies over two years. During the pandemic, enhanced ACA tax credits helped 24 million Americans get health coverage in 2025. Many of these people pay little to nothing monthly for their plans. The new law would also stop subsidies for households earning over $200, 000 and require a minimum monthly payment of $25 to prevent fraud. Critics argue this plan could raise premiums for millions. Michael Ryan, a finance expert, says the plan is more about politics than real solutions. He believes it will hurt middle-income families and older adults who rely on ACA coverage. Senator Susan Collins, a Republican from Maine, supports the plan. She thinks it will help families avoid sudden premium increases. However, others like Alex Beene, a financial literacy instructor, warn that ending these tax credits could force millions to pay more or go without insurance. Kevin Thompson, CEO of 9i Capital Group, doubts the plan will pass Congress. He says it lacks a clear replacement or bipartisan support, making it more about politics than real change.