Johnson Votes to Lower Health Care Costs for South Dakota Families

Northeast Radio SD News – South Dakota - U.S. Representative Dusty Johnson voted Wednesday to pass the Lower Health Care Premiums for All Americans Act (H.R. 6703), a legislative package aimed at curbing rising insurance costs and increasing transparency within the healthcare system.

The legislation comes as South Dakota families face significant financial pressure from health insurance costs. In 2025, the average family paid $27,000 in premiums—a figure projected to rise by 26% in 2026. Johnson noted that for many, these costs have eclipsed essential living expenses.

“Obamacare made health care unaffordable for the American family. Many families are paying more for their health insurance than they pay for their mortgage or rent,” Johnson said. “The program has become riddled with waste, fraud, and abuse, which only drives prices higher for those trying to do right. The Lower Health Care Premiums for All Americans Act will fix a broken system and provide more options for people who are struggling to make ends meet.”

Reducing Costs and Increasing Transparency

The act introduces several targeted reforms designed to stabilize the insurance market and lower out-of-pocket expenses:

·         Lower Premiums: The bill is projected to lower premium costs by 11% through the appropriation of cost-sharing reduction payments. It also aims to reduce enrollees’ deductibles and copays.

·         PBM Transparency: The legislation targets Pharmacy Benefit Managers (PBMs) by requiring them to provide transparent, detailed reporting on prescription drug spending. This measure is intended to expose hidden costs and rebates that often drive up drug prices.

·         Association Health Plans: Small business owners and independent workers would gain the ability to form Association Health Plans (AHPs). By banding together across industries, small employers can access group rates and higher-quality plans usually reserved for large corporations.

·         Customized Care: The act provides employees with “CHOICE arrangements,” allowing them to use tax-free employer contributions to purchase individual health plans that better fit their specific needs.

Addressing Systemic Fraud

A primary driver of the legislation is a recent report from the U.S. Government Accountability Office (GAO), which highlighted significant vulnerabilities in the current system. According to the investigation, 100% of fake applicants submitted by investigators were approved for subsidized coverage in late 2024.

Data from 2024 revealed that:

·         Insurers received $94 million in taxpayer subsidies for deceased individuals.

·         One Social Security Number was used to secure 125 different insurance policies.

·         Over 66,000 Social Security Numbers were used to claim more than a year’s worth of coverage within a single calendar year.

Economic Impact

Beyond addressing fraud, the bill aims to counter the “record profits” of large insurance companies, which the report claims are 600% higher than when the Affordable Care Act was first signed into law. By introducing market-based competition and removing regulatory overreach, proponents of the bill argue it will restore integrity to federal health programs while protecting small businesses.

The Lower Health Care Premiums for All Americans Act now moves to the Senate for further consideration.