Krishnamoorthi Warns CMS Administrator Dr. Mehmet Oz That Health Plans Are No Substitute for Extending ACA Tax Credits To Prevent Rates From Soaring

SCHAUMBURG, IL – Following visits this week to Loretto Hospital in Chicago and River Bluff Nursing Home in Rockford—facilities already straining under the Trump Administration’s health care cuts—Congressman Raja Krishnamoorthi, Ranking Member of the Oversight Subcommittee on Health Care and Financial Services, wrote to Centers for Medicare & Medicaid Services (CMS) Administrator Dr. Mehmet Oz, urging CMS to abandon its plan to expand “catastrophic” health insurance eligibility and instead support congressional action to extend the Affordable Care Act’s enhanced premium tax credits.

The letter, sent after Krishnamoorthi’s tour of Illinois health care providers, details how families, hospitals, and nursing homes are already facing mounting costs due to federal healthcare cuts. Drawing on new data from KFF, the Urban Institute, and the CBO, the Congressman warned that letting the ACA’s enhanced tax credits expire on January 1, 2026, would cause premiums to jump by an average of 75 percent nationwide and push millions of Americans off their insurance plans.

“I am writing with serious concern regarding the upcoming expiration of Affordable Care Act (ACA) enhanced premium tax credits and the recent announcement from the Centers for Medicare & Medicaid Services (CMS) that CMS is expanding eligibility for ‘catastrophic’ health plans as a supposed solution to this looming crisis,” the Ranking Member wrote. “These healthcare tax credits have allowed more Americans than ever to access affordable, quality health care. Since their introduction, enrollment in the ACA marketplace more than doubled—from 11.4 million people in 2020 to 24.3 million in 2025—while roughly 22 million of those enrollees relied on these enhanced tax credits.”

“Without action from Congress, these critical healthcare tax credits will expire on January 1, 2026, leaving hardworking, low- and middle-income Americans unable to afford health coverage. If these credits lapse, insurance premiums will increase by an average of 75 percent. To put this in real terms, a family of four making $80,375 would see their average net premium jump from $169 to $919. Farmers, small-business owners, and self-employed individuals rely on these credits to afford health insurance, and such an astronomical price hike would put coverage out of reach for far too many.”

Krishnamoorthi also cautioned against CMS’s plan to expand “catastrophic” plans, writing:

As a ‘solution,’ CMS has announced that it will expand eligibility for catastrophic health plans, which offer lower monthly premiums but require patients to pay up front for care due to high deductibles. In 2025, the annual out-of-pocket deductible for an individual with a catastrophic plan was nearly $10,000. Catastrophic plans are not a substitution for the high-quality coverage that families can currently afford because of these tax credits.

The Congressman further tied these policy choices to the sweeping healthcare cuts enacted under President Trump’s One Big Beautiful Bill Act, which stripped nearly $1 trillion from Medicaid, Medicare, and ACA programs. He noted that “as many as 17 million Americans—including approximately 535,000 Illinoisans—are projected to lose their health insurance because of this Big Ugly Bill,” and that “at least 11 hospitals in Illinois are at risk of closing, threatening healthcare access for children, seniors, and countless others across the state.”

The Ranking Member concluded:

CMS has a responsibility to ensure that American families have access to quality, affordable, comprehensive health care. Without swift intervention, the expiration of enhanced tax credits will push coverage out of reach for many low- and middle-income families and reverse the progress made in recent years. Instead of propping up catastrophic health plans that will be catastrophic for Americans’ wallets, I urge you to publicly support extending the tax-credit funding that families need before it expires.

During his visits to Loretto and River Bluff, the Congressman heard firsthand how these cuts are already affecting Illinois communities. At Loretto—where 83 percent of patients rely on Medicaid—administrators described how reduced federal support jeopardizes mental health, maternal care, and rehabilitation services. At River Bluff, caregivers warned that shrinking reimbursements could force bed closures and longer waitlists for families seeking elder care.

Earlier this year, Krishnamoorthi introduced the Bringing Back Benefits Act to reverse the Administration’s Medicaid and SNAP cuts and protect affordable coverage for working families.

The full oversight letter to Administrator Oz is available here.