WASHINGTON — House Democrats will attempt today to extend pandemic-era Obamacare subsidies without any reforms whatsoever. Minnesota’s abundance of recent fraud scandals demonstrates exactly why that’s a mistake. The Government Accountability Office (GAO) report released last month confirms the same subsidies are already flowing to fake identities, duplicate Social Security numbers, and even deceased individuals nationwide.
Democrats want to extend and expand this program as-is to continue hiding the true cost of Obamacare. Republicans are passing bills that lower real health care costs.
MINNESOTA: FEDERALLY FUNDED PROGRAMS, MASSIVE FRAUD
- Medicaid programs expanded beyond traditional medical care.
- Minnesota Medicaid spending since 2018: ~$18 billion
- Federal government covers 64% of Minnesota Medicaid costs.
- Prosecutors allege widespread fraud across 14 state-run Medicaid programs, with potential losses totaling over $9 billion.
Minnesota’s experience highlights what happens when federal dollars flow through state-administered systems without adequate verification or enforcement.
The Working Families Tax Cut directly target this failure — cutting waste, fraud, and abuse out of programs like Medicaid while protecting benefits for the truly vulnerable and restoring accountability Democrats abandoned.
OBAMACARE SUBSIDIES LACK BASIC VERIFICATION
GAO findings show federal Obamacare subsidies are being paid without effective identity, income, or eligibility checks. 100% of fake applicants created by GAO were approved in late 2024.
- 18 of 20 fake applicants remain enrolled and subsidized in 2025.
- Coverage approved with no documentation or falsified documents.
- Brokers enrolled applicants without their presence by contacting call centers.
- More than $12,300 per month paid for GAO’s fake identities.
SUBSIDIES PAID FOR THE DECEASED
- 58,000 SSNs receiving subsidies matched to deceased individuals.
- 7,000 deaths occurred before coverage began.
- $94 million paid to insurers for deceased enrollees.
COSTS ARE EXPLODING — AND TAXPAYERS ARE ON THE HOOK
Independent analysis of insurers’ mandatory filings shows that Obamacare’s subsidy structure has shifted nearly all financial risk to taxpayers.
- In 2024, taxpayers paid nearly 80% of premiums for subsidized Obamacare plans.
- Up from 30% in 2014
- $114 billion paid directly to insurers in 2024.
- More than double pre-pandemic levels
- Six times higher than in 2014
- The Congressional Budget Office reports the acceleration continued in 2025.
In 2024, 90% of subsidy-eligible enrollees had access to plans costing $10 per month or less.
As subsidies grow, premiums grow — and taxpayers absorb the increase by design. The unsubsidized Obamacare market shrank 25% from 2014–2024.
REPUBLICAN BILL: LOWER HEALTH CARE PREMIUMS FOR ALL AMERICANS ACT
House Republicans passed the Lower Health Care Premiums for All Americans Act — a targeted reform package that lowers premiums, expands coverage options, and restores accountability instead of extending Obamacare subsidies without guardrails.
The bill:
- Lowers premiums responsibly by funding cost-sharing reduction payments beginning in 2027 to stabilize the individual market.
- Increases transparency and lowers drug costs.
- Expands affordable coverage options for workers and small businesses.
BOTTOM LINE
Democrats want to extend a broken system as-is. Republicans are fixing what’s broken. Democrats want to hide the cost of Obamacare. Republicans are lowering the cost of health care.
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