While the federal government is shut down, Republicans and Democrats have both vowed to cede no ground, with the main sticking points being the Democrats’ demand for the extension of enhanced premium subsidies for the Affordable Care Act (a.k.a. Obamacare) and the reversal of massive Medicaid cuts called for in the Republican-drafted One Big Beautiful Bill Act (OBBBA).
The Congressional Budget Office (CBO) has predicted a 75 percent increase in health care costs for millions of Americans if Republicans are successful in denying the Medicaid and AKA demands — notably set to impact red states and MAGA voters as much or more than blue state voters.
Kevin Hassett, President Trump’s Director of the National Economic Council of the United States, was asked on a Meta podcast what the economic impact will be if — and when — health care premiums skyrocket.
Hassett replied: “We’ll just have to wait and see what happens.” He added, “But don’t forget the 75 percent is off a really low number.”
He added: “So when you’re looking at the dollar changes, a partisan would cite the percentages because if you go to a smaller number to a slightly bigger number, then the percentage change is huge.”
Q: There will undoubtedly be economic impact if health care premiums skyrocket.
Hassett: We’ll just have to wait and see.
Q: It’s a 75% increase in premiums.
Hassett: But the 75% is off a really low number.
— Spencer Hakimian (@SpencerHakimian) October 3, 2025
Hassett defended the healthcare insurance subsidies cuts by saying: “It depends where you are, for people at the poverty level then the subsidies are 100 percent. The people who are four times the poverty level the subsidies are smaller. And the question is how much smaller should they be.”
Hassett’s contention that middle class citizens are paying “a really low number” for their health insurance does not find much agreement among actual middle class insurance holders making their case in the responses on X. More than one commenter objected to Hassett’s assertion and his attempt to downplay the economic impact of the rate rise on low and middle income families — and did not think, as Hassett claimed, that it was a “partisan” view.
As one replied: “People who have no concept of what regular middle class life is like, don’t see how a bill going from $350 per month to $900 per month would be a problem.” Another wrote: “Holy Moly- it is not off a really low number- maybe for those in congress who have gold standard benefits and have them for life. Not for the everyday American. The premiums are all ready outrageous and out of pocket continues to skyrocket.”