Economy
Heartland Republicans say extending ACA tax credits would be ‘a colossal mistake’
In an op-ed published by Newsweek last Thursday, U.S. Rep. Scott Perry (R-PA) and other Heartland Republicans indicated they believe extending the Affordable Care Act’s (ACA) advanced premium tax credits would be a “colossal mistake.”
These tax credits, which were implemented under President Joe Biden and approved by Democrats, are set to expire at the end of the year. A KFF analysis suggests that the loss of the tax credits could be responsible for as much as an 18% median rate increase in insurance premiums, representing a significant increase in out-of-pocket costs for consumers.
In the op-ed, Perry and Reps. Andrew Clyde (R-GA), Keith Self (R-TX) and Marlin Stutzman (R-IN) — fellow Freedom Caucus members — argue that extending the subsidies will not make premiums go down, and that the national debt will increase.
“The subsidies don’t actually reduce the cost of health care; they merely mask it or even increase it,” the representatives wrote. “By sending more taxpayer dollars directly to insurance companies, the ACA subsidies camouflage skyrocketing premiums without addressing the root causes of the health care affordability crisis.”
All four representatives voted for President Donald Trump’s One Big Beautiful Bill, which is expected to increase the national deficit by at least $3.4 trillion over the next decade according to the Congressional Budget Office.
Perry’s office did not respond to an email request to comment on why he voted for the One Big Beautiful Bill and wants to effectively increase health care costs. The Pennsylvania Republican led the caucus from January 2022 to January 2024.
Democrats have attempted to permanently implement the ACA tax credits multiple times this year, but they have received no support from the Republican majorities in Congress.