By Rick Larsen / For The Herald
At a time when families are already struggling with high prices and a weak job market, Republicans in Congress are doubling down on a health care crisis of their own making.
Deep Medicaid cuts, major changes to Medicare coverage, and the pending expiration of essential health care tax credits are creating immense uncertainty in the health care market. Employers are bracing for the largest annual increase in health care costs in 15 years and mass layoffs are hitting local hospitals hard.
Funding for the federal government runs out next week, which threatens to add more instability to a weakening economy. Instead of working with Democrats to keep the government open, President Donald Trump has walked away from the negotiating table. Republicans are going all in on a government funding plan that will cause 80,000 Washingtonians to lose their health insurance and raise health care prices for all of us.
In August, I met with a member of the community who the Republicans’ government funding plan will harm: Kathryn, a small business owner who lives in Bellingham.
Since she and her husband are self-employed, Kathryn told me that her family paid roughly $30,000 this year for health insurance. If the Republican government funding plan goes through, they expect to have to pay $50,000 to $55,000 next year; more than they can afford. Without tax credits, this hard-working family will be priced out of their health insurance.
Kathryn wrote to my office: “And why are we in this position? So Jeff Bezos can get a big tax cut. We need the [tax credits], and Jeff can give up some of his tax cut to pay for it.”
I couldn’t agree more.
These health care tax credits create economic freedom for small businesses and entrepreneurs to pursue opportunities they otherwise may not have. Starting a business takes risk, and these credits ensure unaffordable health care costs for your family don’t hold you back.
Allowing these credits to expire is a devastating continuation of the health care crisis the Trump administration started back in July, when the Big Ugly Law made the largest cuts to Medicaid in its history. Because of the Big Ugly Law, more than 328,000 Washingtonians will lose their health care insurance in the next few years.
Taking health care away from hard-working people hurts all of us. Our family, friends and neighbors will be forced to skip or delay getting the medical help that they need. More uninsured individuals create more risk for the health care system, and insurance companies pay for this risk by raising premiums.
The Big Ugly Law’s funding cuts are already forcing local hospitals to scale back. Providence Swedish in Edmonds and Seattle Children’s Hospital collectively have laid off more than 100 staff in Everett, citing cuts to Medicaid and Medicare in the Big Ugly Law as part of the reason for the decision. Island Health in Anacortes expects Big Ugly Law funding cuts to cost millions, threatening its long-term sustainability.
The Trump administration and Republicans have pushed the health care system to the brink. Now, they are shutting down the government so they can kick the health care system off a cliff.
At midnight Tuesday, funding for the federal government will run out. Thousands of Northwest Washington state workers may be furloughed. Local farms may stop receiving disaster relief dollars. Active-duty members of the military may be required to report for duty but not receive paychecks.
The Trump administration is also threatening to permanently layoff massive numbers of federal employees if a shutdown occurs, effectively using hard-working civil servants — with families to support — as political pawns. More layoffs will further weaken the economy and make it harder for Americans to access critical services the government provides.
A Republican government shutdown would be yet another blow to the economy courtesy of the Trump administration. Because of reckless trade wars and stupid tariff policies, prices are up and the economy is down. In August, the Bureau of Labor Statistics issued the worst jobs report in the past 15 years and reported the biggest jump in grocery prices in the past three years. Electricity prices are 6.2 percent higher than in the same month in 2024.
Republicans are inflicting more pain on Northwest Washington state families so they can double down on a health care crisis of their own making. Alongside House Democrats, I am fighting to lower the cost of health care and the cost of living for the people I represent.
Republicans must come to the negotiating table and work with Democrats to reverse the damage this administration has done. I will keep voting and keep fighting to make health care affordable and accessible, and to get our economy back on the right track.
U.S. Representative Rick Larsen, D-Everett, represents Washington’s 2nd Congressional District, which includes part of Snohomish County and all of Whatcom, Skagit, Island and San Juan counties. If you or someone you know needs assistance, Rep. Larsen’s office may be able to connect you with services in your community. Please contact Rep. Larsen’s district office at 425-252-3188.