GOP infighting erupts over healthcare bill

Senate Republicans are struggling mightily to find a path forward for their ObamaCare repeal bill, with infighting between moderates and conservatives threatening to create an impasse heading into the July Fourth recess.

GOP leaders say they want to have an agreement on changes to the legislation by Friday, but senators said they made virtually no progress at a lunch meeting on Wednesday. In fact, the two sides appeared to grow further apart.

Conservatives represented by Sen. Ted CruzRafael (Ted) Edward CruzOvernight Health Care: Democrats attack after Trump revives talk of ObamaCare replacement | Cruz, Ocasio-Cortez efforts on birth control face major obstacles | CVS investing M to fight teen e-cig use Overnight Health Care: Democrats attack after Trump revives talk of ObamaCare replacement | Cruz, Ocasio-Cortez efforts on birth control face major obstacles | CVS investing M to fight teen e-cig use Biden says he will beat Trump in Texas, Georgia and South Carolina MORE (R-Texas) squared off against moderates led by Sen. Susan CollinsSusan Margaret CollinsOvernight Defense: US to send 1K more troops to Mideast amid Iran tensions | Iran threatens to break limit on uranium production in 10 days | US accuses Iran of 'nuclear blackmail' | Details on key defense bill amendments Overnight Defense: US to send 1K more troops to Mideast amid Iran tensions | Iran threatens to break limit on uranium production in 10 days | US accuses Iran of 'nuclear blackmail' | Details on key defense bill amendments Senators revive effort to create McCain human rights commission MORE (R-Maine) over lunch, according to lawmakers who attended.

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They battled over Cruz’s “Consumer Freedom” proposal, which would allow companies to sell health insurance plans that don’t meet the requirements of the Affordable Care Act.

Collins and other moderates expressed strong opposition to the plan, fearing that it would lead to sicker Americans becoming segregated in the insurance markets.

Sen. Ron JohnsonRonald (Ron) Harold JohnsonHillicon Valley: Lawmakers angered over Border Patrol breach | Senate Dems press FBI over Russian hacking response | Emails reportedly show Zuckerberg knew of Facebook's privacy issues | FCC looks to improve broadband mapping Hillicon Valley: Lawmakers angered over Border Patrol breach | Senate Dems press FBI over Russian hacking response | Emails reportedly show Zuckerberg knew of Facebook's privacy issues | FCC looks to improve broadband mapping Lawmakers demand answers on Border Patrol data breach MORE (R-Wis.), meanwhile, continued to chastise leadership for not running a more open process in drafting the legislation and ignoring many ideas from rank-and-file colleagues — criticisms he has voiced over the past few weeks.

One senator described the talks as “running in circles.”

Cruz, leaving the lunch, told reporters that most of the discussion was about proposed market reforms to “reduce premiums to make health insurance more affordable for families who are struggling.”

Collins, who is worried about projections that millions of people will lose coverage under the Senate bill, said she remains concerned with “a number of aspects such as coverage, the Medicaid cuts.”

“Tinkering around the edges, adding a bit more money isn’t going to be the answer,” she said.

Walking out of the meeting, Senate Republican Whip John CornynJohn CornynThis week: Democrats move funding bills as caps deal remains elusive This week: Democrats move funding bills as caps deal remains elusive Trump puts GOP in tough spot with remarks on foreign 'dirt' MORE (Texas) said leadership is aiming to come up with a bill by Friday that both moderates and conservatives can embrace, allowing a vote for the week after the July Fourth recess.

Cornyn said leaders want “to get a bill we can then get scored” by the Congressional Budget Office.

But several Senate Republicans scoffed at the timeline, saying it’s far too optimistic to think a deal can be reached in the next few days.

When asked about the prospects of getting a new bill by Friday, Sen. John McCainJohn Sidney McCainOvernight Defense: US to send 1K more troops to Mideast amid Iran tensions | Iran threatens to break limit on uranium production in 10 days | US accuses Iran of 'nuclear blackmail' | Details on key defense bill amendments Overnight Defense: US to send 1K more troops to Mideast amid Iran tensions | Iran threatens to break limit on uranium production in 10 days | US accuses Iran of 'nuclear blackmail' | Details on key defense bill amendments Senators revive effort to create McCain human rights commission MORE (R-Ariz.) joked to reporters, “And pigs could fly!”

Collins, fellow moderate Sen. Dean HellerDean Arthur HellerThis week: Barr back in hot seat over Mueller report Trump suggests Heller lost reelection bid because he was 'hostile' during 2016 presidential campaign Trump picks ex-oil lobbyist David Bernhardt for Interior secretary MORE (R-Nev.) and conservative Sen. Rand PaulRandal (Rand) Howard PaulOvernight Defense: Pompeo blames Iran for oil tanker attacks | House panel approves 3B defense bill | Trump shares designs for red, white and blue Air Force One Senate rejects effort to block Trump's Qatar, Bahrain arms sales Senate rejects effort to block Trump's Qatar, Bahrain arms sales MORE (R-Ky.) all signaled this week they were unlikely to move from no to yes on the legislation by Friday.

Heller said during a tele-town hall meeting Tuesday that he does not think GOP colleagues are “anywhere close” to a deal and warned it would be “very difficult to get me to a yes,” according to Nevada political commentator Jon Ralston, who reported on the event.

Paul declared after the Wednesday lunch that the GOP conference is at “an impasse.”

He objects to core aspects of the bill as “new entitlements,” including refundable tax credits to help people afford coverage and billions of dollars in a “stabilization fund” intended to bring down premiums. 

Paul told reporters after the GOP lunch Wednesday that he suggested taking the stabilization fund out of the bill and passing it in a separate measure with Democratic votes. But he said his ideas did not go over well with his colleagues, likening his proposal to a “lead balloon.”

Collins on Wednesday said it’s time to work with Democrats instead of trying to win over 50 of 52 Republicans, including conservative holdouts such as Cruz, Paul and Sen. Mike LeeMichael (Mike) Shumway LeeHillicon Valley: GOP senator wants one agency to run tech probes | Huawei expects to lose B in sales from US ban | Self-driving car bill faces tough road ahead | Elon Musk tweets that he 'deleted' his Twitter account Hillicon Valley: GOP senator wants one agency to run tech probes | Huawei expects to lose B in sales from US ban | Self-driving car bill faces tough road ahead | Elon Musk tweets that he 'deleted' his Twitter account On The Money: Democrats move funding bills as budget caps deal remains elusive | Companies line up to weigh in on 0B China tariffs | Trudeau to talk trade with Pelosi, McConnell MORE (R-Utah).

“It’s hard for me to see how we get there. I think a better approach would be to try to involve some moderate Democrats in the process and see if we can come up with a bipartisan bill,” she said. “It’s never good to pass major legislation without the input of both parties.”

Senate Majority Leader Mitch McConnellAddison (Mitch) Mitchell McConnellJon Stewart rips into McConnell for saying he's 'bent out of shape' over 9/11 victim fund Jon Stewart rips into McConnell for saying he's 'bent out of shape' over 9/11 victim fund Tensions with Iran reach new stage over uranium threat MORE (R-Ky.) postponed a vote he hoped to hold this week on the healthcare bill after five members of his conference warned they would vote against a motion to begin debate.

After he delayed the vote, three other Republicans — Sens. Rob PortmanRobert (Rob) Jones PortmanHouse passes bill to establish DHS cyber 'first responder' teams House passes bill to establish DHS cyber 'first responder' teams Democrats needle GOP on standing up to Trump MORE (Ohio), Shelley Moore CapitoShelley Wellons Moore CapitoBipartisan senators propose forcing EPA to set drinking water standard for 'forever chemicals' Bipartisan senators propose forcing EPA to set drinking water standard for 'forever chemicals' August recess under threat as yearly spending bills pile up MORE (W.Va.) and Jerry MoranGerald (Jerry) MoranOvernight Defense: US to send 1K more troops to Mideast amid Iran tensions | Iran threatens to break limit on uranium production in 10 days | US accuses Iran of 'nuclear blackmail' | Details on key defense bill amendments Overnight Defense: US to send 1K more troops to Mideast amid Iran tensions | Iran threatens to break limit on uranium production in 10 days | US accuses Iran of 'nuclear blackmail' | Details on key defense bill amendments Senators revive effort to create McCain human rights commission MORE (Kan.) — announced they opposed the measure.

A variety of Republican senators cycled in and out of McConnell’s Capitol office Wednesday as he scrambled to keep the legislation from collapsing.

He met with Alaska Sens. Lisa Murkow-ski and Dan Sullivan, who are worried about whether the bill’s tax credits are generous enough to help constituents buy insurance in a state where healthcare costs are several times more expensive than other parts of the country.

Moderates who worry the bill’s tax credits are not generous enough are wondering whether some of ObamaCare’s tax increases, such as a 3.8 percentage-point increase on capital gains, should be kept in place.

“I do not see a justification for doing away with the 3.8 percent tax on investment income, because that is not something that increases the cost of healthcare,” Collins told reporters.

Keeping that tax increase, however, would outrage conservatives. 

McConnell also met with Capito, who wants to raise the cap on Medicaid spending that would cut the program by $160 billion in 2026 compared to current law.

After 2025, the Senate bill sets a less generous formula than included in the House-passed bill to index Medicaid to inflation.

Conservatives led by Sen. Pat Toomey (R-Pa.), who had a role in drafting the bill, said the stricter Medicaid inflation formula is “very important.”

Also on the conservative side, an aide to Lee said his boss had not yet met in person with McConnell, but that their two staffs were working on a change related to the ability of states to opt out of ObamaCare regulations.

The ability for states to repeal more of those regulations is key for Lee, as it is for Cruz and other conservatives.

Aside from the moderates, some Republican senators are growing impatient with conservatives holding out after campaigning for years to repeal ObamaCare.

Senate Finance Committee Chairman Orrin HatchOrrin Grant HatchTrump to award Medal of Freedom to economist Arthur Laffer Trump gambles in push for drug import proposal Biden's role in Anita Hill hearings defended by witness not allowed to testify MORE (R-Utah) grumbled that conservatives, whom he called “recalcitrants,” are inadvertently helping the Democrats keep the controversial law intact.

He said Democrats may eventually bring about “socialized Medicine” and warned “it may take a few of these conservative Republicans to help the Democrats be able to do that to us.”

Jordain Carney contributed.