WASHINGTON, D.C. — Centers for Medicare and Medicaid Services Administrator Dr. Mehmet Oz said Sunday that the Trump administration may consider extending enhanced Affordable Care Act (ACA) subsidies, though any deal would require addressing what he described as widespread fraud, waste, and abuse in the system. His comments come as insurance premiums rise and policymakers face growing pressure to prevent major cost increases for millions of consumers.
Oz said the president is “laser focused” on affordability, noting that the White House has explored alternatives such as direct payments to individuals rather than traditional tax-credit subsidies. CMS has also pointed to reinsurance strategies and prescription drug pricing reforms; a previous Trump-era package cut premiums by roughly 10 percent.
The debate follows off-year elections in which health insurance costs were a top concern for voters. House Republicans are assembling a cost-containment package that is unlikely to extend the subsidies, which are set to expire. The Congressional Budget Office estimates that continuing them would cost $35 billion annually. If allowed to lapse, as many as 4 million more Americans could become uninsured by 2034.
Democrats argue the subsidies are essential to preventing steep price hikes nationwide, warning that rising insurance bills could have political consequences, especially in Republican-leaning states with high ACA enrollment. The White House, meanwhile, is preparing a broader push to overhaul the ACA as negotiations accelerate heading into the end of the year.
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