Trump Administration’s Obamacare Subsidy Plan Sparks Debate Over Reforms

Rep. Greg Murphy, R-N.C., expressed support for the Trump administration’s plan to extend Obamacare subsidies but emphasized the need for cost-cutting reforms in the health insurance sector.

On “The Chris Salcedo Show,” Murphy noted that Obamacare was written by insurance companies for insurance companies and has since exploded, leading to temporary COVID relief expansion. He highlighted that the policies are due to expire, causing issues for many people in the country. Under the Trump administration’s draft plan, Obamacare subsidy eligibility would be capped at 700% of the federal poverty level, with the White House considering requiring every enrollee to pay something toward their coverage, ending zero-premium plans created during the pandemic.

One option would mandate a minimum contribution of 2% of income or at least $5 a month for lower-tier plans, a change Republicans argue is needed to crack down on fraud and restore accountability to the program. Murphy pointed to falling insurance-company stock prices and rising premiums as proof the current system is under pressure, stating, “they have to have a way to bolster their stock, bolster their profits. So they’re raising premiums.”

While extending subsidies is “a good part of what’s happening,” he emphasized the need to work concurrently on lowering healthcare costs in the country. He warned that the left wants “more insurance-company profits” pushing towards a single-payer system and said unless immediate action is taken, “it will blow up in our face if we did not do something in the short term to push these subsidies.” Murphy told Salcedo he supports the extension of subsidies as a near-term fix, stating, “I’m glad the president’s working towards this. We have to do something.”