The weeklong shutdown drags on as Democrats push to extend Obamacare subsidies and conservatives warn they’re driving up healthcare costs
By Elizabeth Elkind Fox News
Published October 8, 2025 8:00am EDT
Fox News senior congressional correspondent Chad Pergram reports on Day 6 of the government shutdown on 'Special Report.'
The government has been shut down for a week and so far shows no clear sign of stopping, as Democrats continue to demand that any funding bill include an extension of enhanced Obamacare subsidies, which are set to expire at the end of 2025.
But conservative groups are pushing back hard, arguing that those subsidies are fuel on the fire of higher healthcare premiums.
"What the Biden COVID credit did is they made the situation worse in two ways: They shifted a portion of the premium away from the enrollees to the taxpayer, and they brought more people into the subsidy structure by lifting the cap at four times the poverty line," Brian Blase, president of Paragon Health Institute, told Fox News Digital.
"So if the underlying Obamacare subsidies were inflationary, then the Biden enhancements to it just pour fuel on that underlying inflationary structure."

The government is in a partial shutdown after Congress failed to reach an agreement on federal funding. (Getty Images)
Obamacare, formally called the Affordable Care Act (ACA), established a marketplace where healthcare insurers offer plans under certain rules set in place by the federal government, among other provisions. People and families are eligible for subsidies based on their income relative to the Federal Poverty Level (FPL).
Former President Joe Biden’s American Rescue Plan, passed during the COVID-19 pandemic, expanded access so more Americans could qualify for subsidized Obamacare plans while also lowering out-of-pocket costs. A Democrat-led Congress later extended those benefits to 2025 under the Inflation Reduction Act.
Now, however, Democrats are warning that many Americans' healthcare costs are at risk of drastically rising if those enhanced subsidies are allowed to expire.
But conservative groups who have long objected to Obamacare's effects on the market are now arguing that the subsidies themselves have driven up the amount of money that healthcare companies charge for premiums.
Brittany Madni, executive vice president at the Economic Policy Innovation Center (EPIC), told Fox News Digital, "You do have patients who are still continuing to pay high prices, and a huge reason that they're paying higher prices is because the entire system has been artificially inflated by the unaffordable mandates in Obamacare and the continued subsidies."
"The supersized COVID credit subsidies aren't reducing prices whatsoever. They're just adding funds to the insurance revenues," Madni said.
Obamacare did originally include a federal-level tax penalty for Americans who remained uninsured after its passage. That was repealed under the first Trump administration, but some states have levied their own penalties in its place.









