# ACA Subsidy Debate: $488B Cost, Widespread Fraud 

As Congress debates extending pandemic-era Affordable Care Act (ACA) premium subsidies, Cato’s [Adam Michel](https://www.cato.org/people/adam-n-michel) exposes the program’s troubling costs.

October 7, 2025 • News Releases 

As Congress debates extending pandemic-era Affordable Care Act (ACA) premium subsidies, Cato’s [Adam Michel](https://www.cato.org/people/adam-n-michel) exposes the program’s troubling costs. A permanent extension of the expanded subsidies would cost more than $488 billion over ten years while allowing households earning nearly $600,000 to receive subsidies.

Recent analysis reveals 6.4 million improper enrollees costing taxpayers $27 billion in 2025, with 11.7 million people filing zero claims. Since the ACA’s passage, health insurer stocks have surged 1,000 percent—four times S&P 500 growth.

Michel argues these temporary COVID measures shouldn’t become permanent entitlements. You can read his [full analysis here](https://www.cato.org/blog/six-reasons-not-extend-enhanced-obamacare-subsidies).

If you’d like to speak with Michel, please reach out to Madison: [mmiller@​cato.​org](mailto:mmiller@cato.org).

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