Cato Podcast The Shutdown That Solved Nothing
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Nov 18, 2025 Michael F. Cannon, Director of Health Policy Studies at the Cato Institute, and Romina Boccia, Director of Budget and Entitlement Policy, dive deep into the ramifications of the recent 43-day government shutdown. They discuss the contentious focus on Obamacare subsidies for high earners and examine the frailty of federal systems like SNAP and air traffic control. The conversation highlights the perils of centralized control and the need for decentralized solutions to prevent future shutdowns, offering insights on potential budgetary reforms and political dynamics.
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Expiration Of Enhanced Obamacare Subsidies
- Obamacare's temporary enhanced subsidies hid large premium increases but are expiring, risking higher out-of-pocket costs for many enrollees.
- Democrats pushed the subsidies politically because health care fears are highly potent and visible to voters.
Restore Short-Term Plan Choice
- Codify flexible short-term plan rules to expand affordable, Obamacare-exempt options without increasing taxpayer cost.
- Use existing regulatory avenues to restore choice rather than enlarging subsidies to insurers.
Cash Instead Of Subsidies Expands Demand
- Redirecting subsidy money as cash would likely expand government by attracting nonclaimants to enroll.
- Cash payments can increase take-up more than in-kind subsidies, raising fiscal cost unexpectedly.