Having failed to repeal Obamacare during the first Trump Term, President Trump and his fellow Republicans are taking an alternative approach to eliminating Obamacare, defunding Obamacare.
US Representative Greg Walden, Republican of Oregon and chairman of the National Republican Congressional Committee, speaks alongside Americans and small business owners that say they have been negatively affected by the Affordable Care Act, known as Obamacare, during a press conference at the Republican National Committee in Washington, DC, January 28, 2014. AFP PHOTO / Saul LOEB (Photo credit should read SAUL LOEB/AFP via Getty Images)
Jade Lopez, CRDN
August 25, 2025
The Affordable Care Act (ACA), commonly known as Obamacare, was one of the most significant health care reforms in American history. It was signed into law in 2010 by then President Barack Obama.
The act aimed to expand access to health insurance for millions of Americans by providing a cost-effective healthcare system for those who couldn’t afford it otherwise. It significantly improved the quality of care for thousands of people, and protected those with pre-existing medical conditions (over 133 million Americans).
Before the act, nearly 16% of the nation, or 49 million, were uninsured. Six years after the act was put into law, that number dropped by nearly half (less than 29 million people). By 2023, the uninsured rate was the lowest our country has ever seen at a record 7.7%. Additionally, the ACA had a record enrollment in 2024, as over 21 million people signed up for plans across the nation.
Since the start of the act, Republicans expressed their disdain and anger for it, claiming it gave the government too much power over the healthcare system, calling it “socialized medicine.” Among these vocal right extremists was current President Donald Trump, who “vowed to dismantle the law during his presidential campaign and took significant steps to defund it during his time in office.”
Trump’s defunding efforts marked a critical juncture in U.S. healthcare policy, raising questions about the limits of executive power, the politicization of healthcare, and the long-term impact on millions of Americans.
Trump and other politicians feared the act would hurt businesses by the taxes and regulations. They claimed it was “unconstitutional” to force Americans into buying/having insurance.
Trump and his administration adopted a strategy to undermine the ACA. In October 2017, He announced the end of cost-sharing reduction (CSR) payments to insurers. Payments that were designed to help insurers lower out-of-pocket costs for low-income policyholders. Without them, insurers were forced to raise premiums, creating instability in the insurance markets.
Trump’s administration cut funding for advertising and outreach that encouraged ACA enrollment, slashing the budget for these efforts by nearly 90%. The administration also reduced the open enrollment period for ACA marketplaces from 12 weeks to just 6 weeks.
In 2017, the Tax Cuts and Jobs Act was put into place, which eliminated the individual mandate penalty starting in 2019. One of the main factors of the ACA, which required all Americans to have health insurance or pay a fine.
Insurers could not deny coverage or charge more if you had any condition before the act (asthma, heart disease, diabetes, etc.) And many people actually qualified for tax credits to lower monthly payments.
Trump’s defunding of Obamacare was deeply political.
The administration faced widespread criticism from Democrats, health experts, and even some moderate Republicans who warned that millions could lose coverage.
Premiums rose in many states, and insurers withdrew from some markets due to the uncertainty created by the loss of federal payments. The Congressional Budget Office estimated that halting CSR payments would increase federal deficits and cause premiums to rise by 20% in the first year alone.
Despite relentless setbacks, enrollment numbers remained relatively stable due to state-level outreach efforts and the law’s popularity.
Universal healthcare saves lives. It provides consistent and reliable care. It reduces financial hardships for those in need. It prevents those hefty medical bills. It improves public health and prevents diseases. It promotes equality and equity in healthcare. It gives voices to the unheard.