Avik Roy criticizes both sides in government shutdown over health subsidies

According to Avik Roy, one of the first and most vocal critics of the Affordable Care Act (ACA), also known as Obamacare, both Republicans and Democrats missed the mark on the healthcare debate that led to a 24-day government shutdown.

“Both sides are at fault,” Avik said. “I sympathize with the Republicans’ view, but this is a strategic mistake.”

Roy’s perspective on things is that Republicans’ wariness about renewing expanded government subsidies should address the larger problem behind them.

“Subsidies are inherently OK,” Roy said. “If you want low-income people near the poverty line to have insurance, you’re going to have to subsidy. Subsidies were a part of the Republicans. [healthcare] Plans and Democratic plans. “I think Obamacare’s approach to subsidies is actually pretty reasonable.”

Nor does this mean that the government believes the current health care trajectory is sustainable.

BACKGROUND: TED CRUZ PREDICTIONS OBAMACARE BALLOON BENEFITS ARE NOW AT THE CENTER OF LOCKDOWN WAR

The federal government entered a 24-day shutdown at the beginning of October after lawmakers failed to agree on spending legislation to start the new fiscal year. Republicans have introduced a short-term spending bill that would give lawmakers more time to finalize 2026 funding. But Democrats, led by Senate Minority Leader Chuck Schumer (DY) and House Minority Leader Hakeem Jeffries (DY), have repeatedly pushed back on the measure, demanding that Congress first address the expiration of Covid-era insurance subsidies.

House Minority Leader Hakeem Jeffries (R) with Senate Minority Leader Chuck Schumer (DY) for a press conference in the Capitol Statuary Hall on February 12. (Rod Lamkey/AP)

As part of the American Rescue Plan, the Biden administration has greatly expanded the pool of eligible applicants who can receive federal assistance to help pay for Obamacare health insurance.

In its original form, Obamacare limited subsidies to anyone earning more than 400% of the federal poverty level. But that changed in 2021 when Congress temporarily lifted that limit as an emergency response to COVID-19.

The limit will come back into force at the end of 2025.

‘THE PANDEMIC IS OVER’: GOP, DEM SENATORS FACE CAMERA ABOUT COSTY OBAMACARE BENEFITS

Findings from health policy think tank KFF, to indicate More than 90% of the 24 million people enrolled in Obamacare benefit from the expanded credits. Letting them expire could leave Obamacare enrollees suddenly facing a much heftier bill. However, based on Maintaining the policy would also come at a high cost, according to the Committee for a Responsible Federal Budget, a nonpartisan fiscal policy think tank; More than $30 billion annually.

Republicans, especially the top fiscally conservative lawmakers, have called for an end to the subsidies to help get the nation’s spending back under control.

Although he agrees with Republicans that Obamacare does little to make health insurance more affordable, Roy believes Republicans’ insistence on allowing health insurance to expire won’t solve Obamacare’s core problems that are causing prices to rise: regulations.

Roy believes Republicans should use this moment to negotiate; Extend subsidies for current enrollees perhaps 1-2 years in exchange for permanently fixing the costliest Obamacare regulations that are driving up costs.

CONSERVATIVES AT THE CENTER OF THE ‘FUEL’ CLOSURE OF OBAMACARE BENEFITS TO FIGHT HEALTH CARE INFLATION

“In Switzerland [health insurance] It costs $200 per month or $300 per month. In America, the same plan costs $1,000 per month or $15,000 per month. It is also very costly to subsidize this. “But having a scale where the subsidy gradually decreases as the income scale rises, that part is good.”

Roy praised the Trump administration’s efforts to lower the essential costs of health care through its most recent most-favored nation strategy. Under this plan, the Trump administration took advantage of the prices paid by other countries for drugs to reduce US prices.

In theory, a most-favored nation plan would set American prices at the lowest rates paid by other countries.

President Donald Trump speaks in the Oval Office of the White House in Washington, DC, on Friday, October 10, 2025. Trump announced a deal with AstraZeneca Plc to lower consumer prices for some of the company’s drugs in exchange for tariff reductions. (Shawn Thew/Getty Images)

Roy said of the administration’s negotiations: “These aren’t really agreements that establish most-favored nation status, because they’re company by company and on specific drugs. But the general idea — if you want to participate in the U.S. market, you should give us the lowest price you’re giving any other advanced economy — I think that’s perfectly reasonable.”

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In response to Democrats’ demands, Republicans in Congress quickly rejected the demands, arguing that enhanced premium tax credits were completely unrelated to government financing.

The Senate has voted on a short-term funding bill 12 times since the start of the shutdown and appeared no closer to finding a solution when lawmakers left town Thursday.

The Senate will return to Washington, D.C. early next week.