Congress returns from a spring recess on Monday.
In early March, President Joe Biden released his $6.8 trillion spending plan for fiscal 2024, complete with a proposal to permanently extend the generous healthcare insurance subsidies enacted as part of the American Rescue Plan Act passed in March 2021. Many Republicans are insisting on spending cuts, given the federal government’s $31 trillion debt load.
They should start by trimming those health insurance subsidies. They represent billions in spending that taxpayers can’t afford — especially since they’re paying for coverage that’s borderline useless for its beneficiaries. Consider that the American Rescue Plan Act made existing subsidies for coverage purchased through Obamacare’s exchanges more generous and extended them for the first time to people making more than four times the federal poverty level — about $120,000 for a family of four. Last year’s Inflation Reduction Act extended these enhanced subsidies through 2025.