As the federal government shutdown enters its fourth week, Democrats in Congress withhold votes to reopen unless Republicans extend temporary COVID-19 Obamacare subsidies. In 2022, Democrats supported ending these subsidies in the Inflation Reduction Act, but now, with a shift in power, their stance has changed. These subsidies distort the market, and their expiration could double premiums for some Obamacare enrollees. This should be fixed by increasing fairness in the system. However, the real scandal lies in Minnesota, where unchecked handouts fuel rampant waste and fraud in taxpayer-funded health care programs.
Obamacare subsidies are hidden when you apply: if you’re a contractor seeking insurance on MNSure, you automatically receive taxpayer subsidies, often unaware until they end. Republicans must stand firm for fairness in health care funding, not pour more money into subsidies masking scams that threaten to bankrupt the nation. The “One Big Beautiful Bill” introduces accountability measures, including:
- Eligibility checks to prevent payments for ineligible policies.
- Work or volunteer requirements for able-bodied Medicaid recipients.
- Ending “sick tax” increases that let states double-dip federal funds.
Loading more people onto government programs without oversight drives up costs for taxpayers and policyholders. In 2025, Minnesota will spend $104 million in state taxes on MinnesotaCare for undocumented immigrants, with 99% of the program now taxpayer-funded due in part to uncollected premiums. Last year, the Center of the American Experiment found one in five of Minnesota’s 1.1 million Medicaid enrollees were unaware of their coverage—some were on private insurance, others deceased, yet payments continued. Automatic approvals without redetermination or verification fuel this mess. In 2019, Minnesota was fined $150 million for improper Medicaid payments, a fraction of ongoing criminal fraud costing millions more that help make up the $31 billion in federal improper payments in Medicaid.
Democrats’ focus on a small portion of subsidies ignores what is driving the exploding costs of federalized health care. Senate Minority Leader Chuck Schumer should back the clean spending resolution to reopen the government and work with Republicans to cut waste, restore state oversight, and ensure fairness in health care funding.
Minnesota’s Medicaid fraud epidemic, worsened by lax oversight under Governor Tim Walz, includes multimillion-dollar schemes and $250 million in duplicate payments for 50,000 enrollees. This standoff is a chance for reform. Minnesota should tighten eligibility, expand audits, and shift to market-based solutions. Lawmakers: end the shutdown and tackle these hidden costs.
