Reed: Trump’s Tax Bill Decimates Medicaid & Will Increase Health Care Prices for All Americans

PROVIDENCE, RI - With Rhode Island health insurance premiums slated to increase by over 20 percent in many cases in the coming year and approximately 175,000 Rhode Islanders who are covered by commercial insurance plans slated to see their premiums rise by double digits in 2026, U.S. Senator Jack Reed is calling on President Trump and Congressional Republicans to work with Democrats and negotiate an end of year budget fix that lessens the blow on families and small businesses.

"Costs matter and it's high time for President Trump and Congressional Republicans to acknowledge the obvious: Their policies are driving up health care costs for everyone. The Trump-Republican Medicaid cuts will hit seniors, children, disabled Americans, health care providers, hospitals and more. Now the president is saying he won't support any relief. It's a continuation of his failure to live up to his campaign promises on the cost of living. If he won't come to the table and even talk to Democrats about health care costs, then winning Democratic support is far less likely," said Senator Reed.

Reed is pressing Republican leaders and President Trump to extend enhanced premium tax credits (PTC) for health care premiums purchased under the Affordable Care Act (ACA), warning that nearly 38,000 Rhode Island residents who purchase coverage through HealthSource RI with tax credits will see a dramatic increase in out-of-pocket costs in 2026.

If the ACA tax credits disappear, average premiums could soar by as much as 75 percent, according to KFF, a nonpartisan health policy research group.

The average HealthSourceRI enrollee is expected to pay $1,248 more annually for the same health insurance plan if the credits expire. Reed warned that more than 11,000 Rhode Island residents are at risk of losing coverage because they won't be able to afford it and called on Congress to extend the credits before they expire on September 30 to keep health costs from skyrocketing.

"President Trump's Medicaid cuts and Congressional Republicans refusal to extend these tax credits means people who need health care aren't going to get it. It will push more Americans into a pool of already uninsured patients, force rural hospitals to shutter, and increase costs for people on private insurance too," said Senator Reed.

The so-called "One Big Beautiful Bill Act" (H.R. 1), which President Trump signed into law in July, cuts Medicaid by nearly $1 trillion and restricts ACA enrollment. According to the non-partisan Congressional Budget Office (CBO), Trump's law is expected strip 10 million people of their health care coverage causing market instability and increasing premiums on even more people with private insurance.

The enhanced premium tax credits have been in place since 2021. Thanks to the ACA, also known as Obamacare, eligible individuals who otherwise couldn't get affordable coverage through their employers may purchase coverage from the marketplace and qualify for the PTC to reduce their monthly premiums.

A report by the Georgetown Center on Health Insurance Reforms, outlines significant premium price increases and coverage loss for millions of Americans fueled by expiring PTCs, President Trump ' s tariff policies, cuts to health care in the Republicans ' budget bill and rising health care costs. The report highlights that low- and middle-income Americans who are older and living in rural areas will be disproportionately affected, and that one commonly cited factor driving 2026 rate increases is the looming expiration of PTCs.

"Trump's law decimates health care access and increases costs for all health consumers. These health insurance spikes for millions of Americans are totally avoidable, but it requires Republicans to agree to put patients ahead of billionaires and special interests. Congress needs to act now before these cuts are locked in and millions of people lose their health coverage and Trump's policies inflict severe and lasting damage on our public health system. Republicans must join Democrats to help lower health prices, protect Medicaid, and prevent avoidable hospital closures," said Senator Reed.

Rhode Island is slated to lose approximately $4 billion in federal Medicaid funding under Trump's law, according to projections from experts at KFF.

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