What the Democrats Are Doing Right Now Won't Lower Health Care Costs—but Here's What Actually Would

At the heart of the budget standoff that has the government shut down is Democrats' insistence on extracting a laundry list of policy changes, including locking in the supposedly temporary, COVID-19–era expansion of Obamacare premium tax credits (or "Biden COVID-19 credits"). In essence, Democrats think the best way to lower health care costs is to direct more funding to insurance companies. This idea could not be more wrong. The credits are costly, poorly targeted and riddled with fraud, and do nothing to stop rising premiums.

Start with the price tag. Based on Congressional Budget Office (CBO) estimates, permanently extending the Biden COVID-19 credits would cost about $410 billion, including interest, over the next decade. Total spending over 10 years would amount to $488 billion. Funds would go straight to insurance companies to mask the real cost of coverage.