ACA Subsidies Would Continue To Mask, Not Fix, The Fundamental Problems

Harrisburg, PA  (1/8/25) — The U.S. House of Representatives is scheduled to vote on an extension of the Affordable Care Act (ACA) premium subsidies for an additional three years.

The LIBRE Initiative, the nation’s largest center-right Latino advocacy organization, expressed disappointment with lawmakers, including U.S. Reps. Rob Bresnahan, Brian Fitzpatrick, and Ryan Mackenzie, for supporting the extension because the policy continues to prop up a broken system that benefits insurance companies while failing working families.

Jennie Dallas, Pennsylvania Strategic Director of The LIBRE Initiative, released the following statement: 

“Here in Pennsylvania, Latino families are feeling the pressure of rising premiums, high deductibles, and fewer choices when it comes to health care. Extending Obamacare subsidies may temporarily hide these problems, but it does nothing to fix the system that’s failing working families in our communities.

Latinos in Pennsylvania aren’t asking for bigger government subsidies that benefit insurance companies — we’re asking for affordable care, trusted doctors, and clear prices we can plan our family budgets around. This extension continues to reward waste and inefficiency while families are left paying more and getting less.

Pennsylvanians deserve better than another short-term patch. Congress should stop doubling down on policies that aren’t working and instead focus on real solutions that expand choice, increase transparency, and put patients — not bureaucracies — in control of their health care.”

THE TRUTH: 

• Supporters of the extension frequently cite record enrollment numbers as proof of success.
• However, deeper analysis shows the program is plagued by waste, abuse, and inefficiency. Nearly half of new enrollees are considered “phantom enrollees,” individuals who never meaningfully use their coverage or only enroll because plans are free.
• In 2025 alone, an estimated 6.4 million people were improperly enrolled, often without qualifying or even realizing they were signed up for coverage.
• Additionally, nearly 40 percent of subsidized enrollees filed zero medical claims — a clear sign the program is failing to deliver real access to care.
• These subsidies do not address the core problems in our health care system — affordability, access, and transparency.
• Instead, they cement a system that rewards waste and funnels billions of taxpayer dollars to large insurance companies while families continue to struggle with rising premiums, deductibles, and surprise medical bills.

FOR LATINOS:  

• For Latino families already facing high out-of-pocket costs, the extension represents a missed opportunity to pursue reforms that prioritize choice, competition, and patient-centered care.
• LIBRE continues to advocate for a Personal Option approach to health care — one that expands Health Savings Accounts (HSAs), promotes Direct Primary Care (DPC), supports portable insurance options, and removes regulatory barriers that drive up costs and limit access.
• As Congress considers the future of U.S. health care policy, LIBRE urges lawmakers to move away from temporary, costly subsidies and toward meaningful reforms that empower patients, increase competition, and deliver affordable, high-quality care for working

ABOUT LIBRE:

The LIBRE Initiative is a non-partisan, non-profit grassroots organization dedicated to empowering the U.S. Hispanic community. We focus on promoting economic freedom, educational opportunities, and a path to prosperity for all. By advocating for policy changes at both the local and national levels, we aim to ensure that the American Dream remains attainable for everyone.