Healthcare Costs: A New Republican Plan Sparks Debate

The CARE Act: A Temporary Extension with Potential Consequences

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
• Gradually phase out COVID-era subsidies over two years

Impact of the Proposal

During the pandemic, enhanced ACA tax credits helped 24 million Americans get health coverage in 2025. Many of these individuals pay little to nothing monthly for their plans.

The new law would also:

• Stop subsidies for households earning over $200,000
• Require a minimum monthly payment of $25 to prevent fraud

Critics Warn of Higher Premiums

Michael Ryan, a finance expert, argues that the plan is more about politics than real solutions. He believes it will hurt:

• Middle-income families
• Older adults who rely on ACA coverage

Supporters and Opponents

• Senator Susan Collins (R-Maine) supports the plan, stating it will help families avoid sudden premium increases.
• Alex Beene, a financial literacy instructor, warns that ending these tax credits could force millions to pay more or go without insurance.

Will the Plan Pass Congress?

Kevin Thompson, CEO of 9i Capital Group, doubts the plan will pass. He says it lacks:

• A clear replacement
• Bipartisan support

Making it more about politics than real change.