Ocasio-Cortez, Schneider, Sewell, Lead 52 Democrats Urging Secretary Kennedy and Administrator Oz to Rescind Trump Policy to Allow Health Insurance Companies to Offer Predatory Loans

WASHINGTON, D.C. – Today, Congresswoman Alexandria Ocasio-Cortez (NY-14), alongside Congressman Brad Schneider (IL-10) and Congresswoman Terri Sewell (AL-07), led 52 of their House Democratic colleagues in urging Health and Human Services Secretary Robert F. Kennedy Jr. and Centers for Medicare and Medicaid Services Administrator Dr. Mehmet Oz to rescind a final rule that allows health insurance companies to offer loans to Affordable Care Act enrollees to cover their deductibles and other medical costs. This rule will place health insurers in a new role as loan officers, potentially allowing these companies to subject patients to predatory interest rates or condition care on patients’ ability to pay back their loans. 

In June, the New York Times reported on the rule and the strain many Americans are already dealing with as insurance premiums and healthcare costs rise, highlighting that 36% of U.S. households have medical debt.  

“100 million Americans are currently living under the weight of medical debt and now the Trump administration is proposing making the load even heavier,” said Congresswoman Ocasio-Cortez. “This will only further entrench working families in a never-ending cycle of medical debt, and could lead health insurers to require repayment before people can renew their insurance plans or receive the care they need.” 

“Every American should have quality, affordable healthcare with providers they know and trust when and where they need it,” said Congressman Schneider. “Sadly, thanks to President Trump and Congressional Republicans’ refusal to extend the ACA tax credits, millions of families have lost access to healthcare, and millions more have seen their healthcare costs skyrocket this year. We should be working together on solutions that lower costs and expand access to care. Instead, the Trump Administration is inviting insurers to profit off of our nation’s growing medical debt crisis. The Administration must rescind this predatory rule and better focus on advancing policies that make healthcare more accessible, more affordable, and more sustainable for American families.” 

“The Trump Administration and Congressional Republicans have spent the past year making health care more expensive for American families—allowing ACA premium tax credits to expire, driving up premiums, and stealing coverage from more than a million Americans,” said Congresswoman Sewell. “Now, instead of fixing the problem they created, they're encouraging insurance companies to offer loans to patients who can't afford sky-high deductibles. This policy will push more Americans deeper into medical debt, forcing them to borrow money just to access the care they need. Every American deserves affordable, quality health care they can count on, not a system that profits from families' financial hardship. As Co-Convener of House Democrats' Cost of Living Healthcare Working Group, I'll keep fighting to lower costs and put patients first.” 

“Since this Administration allowed the Affordable Care Act (ACA) enhanced tax credits to expire at the end of last year, there has been a 58% average increase in out-of-pocket premiums in 2026 per person,” the lawmakers wrote. “This trend is expected to continue as rates are set for 2027, with a recent analysis indicating a median proposed premium increase of an additional 14%. This cost increase, adding to an already intense affordability crisis, has resulted in 1.2 million Americans losing health coverage all together.” 

“Ultimately, this Administration has deliberately constructed plans with deductibles that most enrollees cannot afford to pay and is allowing the same insurer who sold the unaffordable plan to offer the enrollee a loan to cover the gap, presumably with interest, and under terms established entirely by the issuer,” the lawmakers continued. “Health insurance was designed to help families during their darkest moments, not profit off denying Americans care and perpetuating prolonged illness. This policy incentivizes health plans to profit off their own enrollees’ medical debt, not provide Americans adequate health coverage.” 

View the full letter text here.

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