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Cruz warns against ObamaCare 'bailout'

Cruz warns against ObamaCare 'bailout'
© Greg Nash

Sen. Ted CruzRafael (Ted) Edward Cruz Cruz puts hold on Biden's CIA nominee It will be Vice (or) President Harris against Gov. DeSantis in 2024 — bet on it Senate rejects Cruz effort to block stimulus checks for undocumented immigrants MORE (R-Texas) on Friday warned against a "bailout" of insurance companies, a warning shot as other Republicans work with Democrats on a bill to stabilize ObamaCare markets. 

“It would be a serious mistake to bail out insurance companies, rather than provide relief to the millions of Americans who are hurting under Obamacare," Cruz said in a statement. 

Cruz acknowledged that the Senate had failed again this week to pass a bill to repeal and replace the Affordable Care Act, but said that Republicans cannot give up and have to keep working. 

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The warning against an insurer "bailout" comes as Sens. Lamar AlexanderLamar AlexanderCongress addressed surprise medical bills, but the issue is not resolved Trump renominates Judy Shelton in last-ditch bid to reshape Fed Senate swears-in six new lawmakers as 117th Congress convenes MORE (R-Tenn.) and Patty MurrayPatricia (Patty) Lynn MurrayGOP votes in unison against COVID-19 relief bill Murray blasts GOP measure on transgender athletes: 'Have a little bit of heart' Senate inches toward COVID-19 vote after marathon session MORE (R-Wash.) are negotiating a bill aimed at stabilizing ObamaCare, which is expected to include funding for key payments to insurance companies known as cost-sharing reductions (CSRs). 

Alexander and Murray are getting close to a deal, but they face a tough task in selling any agreement to the many Republicans that are wary of stabilizing ObamaCare. 

Critics deride funding the CSR payments as a "bailout.” Defenders counter that the payments are simply reimbursing insurers for giving discounts to low-income enrollees that are mandated by law, and that the payments are key to avoiding premium increases and instability. 

Cruz called to "narrow our focus" on repealing ObamaCare around lower costs and "consumer freedom."

"The American people did not send us here to bail out insurance companies," he said. "They sent us here to repeal and replace Obamacare. Failure is not an option.”