Bipartisan 'Fix It Act' Projected to Save Taxpayers $90 Billion While Extending ACA Tax Credits

Washington D.C. – A new bipartisan legislative proposal, the "Fix It Act," is projected to generate $90 billion in taxpayer savings over ten years while preventing a significant increase in healthcare premiums for millions of Americans. The Committee for a Responsible Federal Budget (CRFB) released an analysis confirming the bill's fiscal responsibility, according to its co-sponsor, Representative Kevin Kiley (R-CA).

The legislation, introduced by Representatives Kevin Kiley and Sam Liccardo (D-CA), aims to extend Affordable Care Act (ACA) premium tax credits for an additional two years. This extension is crucial as approximately 22 million Americans face the prospect of steep premium increases if the current enhanced subsidies expire, a concern highlighted by lawmakers from both parties.

To offset the cost of extending these vital tax credits, the "Fix It Act" proposes targeted reforms. These include measures to curb "upcoding" in Medicare Advantage plans and enhance efforts to combat fraudulent insurance practices. "We achieve this through reforms to prevent fraud and overpayments," Rep. Kiley stated in a recent tweet.

Medicare Advantage "upcoding" involves healthcare providers or insurers exaggerating the severity of patient conditions to receive higher reimbursements from the government. Experts estimate that such practices contribute billions in overpayments annually, with MedPAC reporting that coding differences alone could account for $40 billion in additional spending in 2025. The "No UPCODE Act," a related legislative effort, also seeks to address these concerns by scrutinizing diagnostic data for risk adjustment.

The bill has garnered broad bipartisan support, with several lawmakers from both sides of the aisle signing on as co-sponsors. Representative Liccardo emphasized the collaborative nature, stating, "We have a plan to help tens of millions of Americans stay on their health care, and our coalition is growing because this is a fiscally responsible solution that lawmakers on both sides of the aisle can support." The urgency to address rising healthcare costs and ensure affordability remains a key driver behind the legislative push.