Johnson Votes to Lower Health Insurance Premiums by 11%

Washington, D.C. - Today, U.S. Representative Dusty Johnson (R-S.D.) voted to pass the Lower Health Care Premiums for All Americans Act, which makes targeted reforms to health care costs.

"The Affordable Care Act made health care unaffordablefor the American family. Many families are paying more for their health insurance than they pay for their mortgage or rent," said Johnson. "The program has become riddled with waste, fraud, and abuse, which only drives prices higher for those trying to do right. The Lower Health Care Premiums for All Americans Act will fix a broken system and provide more options for people who are struggling to make ends meet."

The Lower Health Care Premiums for All Americans Act:

• Lowers premium costs through cost-sharing reduction payments.
  • Appropriates cost-sharing reduction payments to stabilize the broken system and individual market.
  • Lowers premium costs by 11 percent and reduces out-of-pocket costs like deductibles and copays.
• Brings pharmacy benefit managers (PBMs) transparency and removes hidden costs of prescription drugs.
  • Requires PBMs to provide employers with clear, detailed reporting on prescription drug spending, including rebates, pricing, and formulary decisions.
  • Provides employers and employees with the transparency they deserve to help lower premium costs and improve access to prescription medications.
• Allows small business owners and independent workers to form association health plans.
  • Expands access to Association Health Plans (AHPs) by allowing small employers and self-employed workers to band together across industries to access more options for more affordable, higher quality plans.
  • Strengthens bargaining power for small business owners and independent workers by giving them access to group rates, more provider networks, and alternatives to costly small-group or individual marketplace plans.
• Provides more choices for employees to customize their health care plans.
• Protects small businesses from costly regulatory overreach.

Background:

• In 2025, the average family paid $27,000 in health insurance premiums. These premiums are increasing 26% in 2026.
• Big insurance is making record profits. Their profits are 600% higher than when Obamacare became law.

Waste, Fraud, and Abuse in Obamacare:

• A recent reportfrom the U.S. Government Accountability Office (GAO) showed significant risk of fraud exists with the premium tax credit.
• In the course of GAO's investigation, 100% of fake applicants were approved in late 2024.
• 18 out of 20 fake applicants are still receiving subsidized coverage for 2025.
• CMS approved coverage with no documents or with fake ones, including fake citizenship papers.
• One Social Security Number was used on applications totaling over 125 insurance policies-the equivalent of 71 years of subsidized coverage.
• In 2024, 66,000 Social Security Numbers had more than one year's worth of subsidized coverage in a single year.
• In 2024, health insurers received $94 million in taxpayer-funded subsidies for deceased individuals.