24 hours later, Senate health deal all but completely dead

24 hours later, Senate health deal all but completely dead
© Greg Nash

A Senate healthcare deal to extend critical ObamaCare payments to insurers appears all but completely dead just 24 hours after it was announced.

President Trump reversed course Wednesday and said he opposed the deal, while Speaker Paul RyanPaul Davis Ryan Retirees should say 'no thanks' to Romney's Social Security plan California Governor Newsom and family dress as 2020 Democrats for Halloween DC's liaison to rock 'n' roll MORE’s (R-Wis.) office said the Senate should keep its focus on repealing and replacing President Obama’s signature law.

Sen. John ThuneJohn Randolph ThuneGOP divided over impeachment trial strategy Hillicon Valley: Twitter shares more details on political ad rules | Supreme Court takes up Google-Oracle fight | Pentagon chief defends Microsoft cloud contract House, Senate announce agreement on anti-robocall bill MORE (S.D.), the third-ranking Senate Republican, acknowledged the deal had “stalled out.”

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Some Republican senators said they were working on changes to move the bill in a more conservative direction, but those efforts appeared to have little chance of success.

Democrats, who hailed the agreement on Tuesday, signaled they were preparing to blame Republicans for walking away from the deal crafted by Health Committee Chairman Lamar AlexanderAndrew (Lamar) Lamar AlexanderPelosi aide hopeful White House will support drug-pricing bill despite criticism Overnight Energy: BLM staff face choice of relocation or resignation as agency moves | Trump says he's 'very much into climate' | EPA rule would expand limits on scientific studies Juan Williams: Republicans flee Trump MORE (R-Tenn.) and Sen. Patty MurrayPatricia (Patty) Lynn MurraySenators press FDA tobacco chief on status of vaping ban Retirement bill blocked in Senate amid fight over amendments Senate Democrats call on White House to abandon plan to collect DNA from migrants MORE (Wash.), the panel’s top Democrat.

“Lamar and Patty came up with a deal,” Senate Democratic Leader Charles SchumerCharles (Chuck) Ellis SchumerOvernight Health Care: Trump officials making changes to drug pricing proposal | House panel advances flavored e-cig ban | Senators press FDA tobacco chief on vaping ban Chad Wolf becomes acting DHS secretary Schumer blocks drug pricing measure during Senate fight, seeking larger action MORE (N.Y.) told reporters. “This is the agreement.”

The compromise would provide two years of payments to insurers, compensating them for lowering the out-of-pocket health care costs of certain ObamaCare enrollees. Trump announced he was canceling the payments last week, arguing the previous administration lacked the authority to make them.

Without the payments, the Congressional Budget Office has said premiums could rise as much as 20 percent, and enrollment would likely fall.

Democrats say Trump is seeking to sabotage the law by ending the payments, along with other administrative moves he’s made that they say could damage ObamaCare.

The Alexander-Murray language would also grant states more flexibility to waive ObamaCare rules, a key Republican ask. Lower-cost insurance plans that provide fewer benefits, known as copper plans, would be allowed.

In a nod to Democratic demands, it would provide states with $106 million to fund ObamaCare outreach. Trump had slashed the money for advertising by 90 percent. 

Conservatives have called the payments to insurers a bailout, an argument echoed by Trump on Wednesday.

In response, Alexander said that he was open to adding any language the White House might have to strengthen a provision already in the bill to ensure that insurers can’t keep the payments for themselves, but rather have to pass savings on to consumers in the form of rebates or another mechanism.   

Alexander has been trying to rally support by warning Republicans that premiums would increase 20 percent without the insurer payments and there would be chaos in the market. There’s not much time left, as ObamaCare’s exchanges open for business Nov. 1. 

Sen. Ron JohnsonRonald (Ron) Harold JohnsonGOP divided over impeachment trial strategy White House releases rough transcript of early Trump-Ukraine call minutes before impeachment hearing Johnson opens door to subpoenaing whistleblower, Schiff, Bidens MORE (R-Wis.) said he is pushing for more sweeping changes to move the bill to the right, and has spoken with Alexander. 

Johnson is seeking to increase the duration of short-term health plans; expand health savings accounts; not enforce the employer mandate; and waive the individual mandate penalty for 2017. 

Johnson argues he’s working to shore up conservative support in the House.

“[Alexander and I] are both interested in getting a result,” Johnson told reporters Wednesday. “He's dealing with the hurdle of the Senate. I'm trying, to some extent, to deal with the hurdle in the House and maybe both of our efforts can come together and show members of Congress that this is what we're going to need to do to really alleviate the increasing premiums, which are going to hurt Americans.”

It seems unlikely that Democrats will agree to any of those demands, however.

Schumer blasted Trump for reversing course after the president had previously made phone calls to Alexander encouraging the talks. He warned that ObamaCare was becoming TrumpCare given the administration’s actions, and that the GOP would own it.

“The president's in charge,” Schumer said. “Republicans have the House and Senate. If there's problems in the healthcare system, it falls on their shoulders.” 

Many observers think folding the deal into a government funding bill in December is its best chance of passage. Schumer said that is one option, though he held out hope the agreement could pass before then. 

Only a handful of Republicans, Sens. Lisa MurkowskiLisa Ann MurkowskiHillicon Valley: Federal inquiry opened into Google health data deal | Facebook reports millions of post takedowns | Microsoft shakes up privacy debate | Disney plus tops 10M sign-ups in first day Senators press FDA tobacco chief on status of vaping ban Federal inquiry opened into Google health data deal MORE (Alaska), Mike RoundsMarion (Mike) Michael RoundsHillicon Valley: Facebook launches 'News Tab' | Senate passes bill to take on 'deepfakes' | Schumer outlines vision for electric cars Senate passes legislation to combat 'deepfake' videos America's newest comedy troupe: House GOP MORE (S.D.), John McCainJohn Sidney McCainDonald Trump's 2020 election economic gamble 2020 Democrats make play for veterans' votes The Memo: Democrats confront prospect of long primary MORE (Ariz.) and Bob CorkerRobert (Bob) Phillips CorkerLindsey Graham basks in the impeachment spotlight The Hill's 12:30 Report — Presented by Nareit — White House cheers Republicans for storming impeachment hearing GOP senators frustrated with Romney jabs at Trump MORE (Tenn.), have said they support the deal. Murkowski and McCain voted against the a scaled-down ObamaCare repeal bill in July, helping to sink the measure. 

“Obviously until the president’s on board, yes there are probably changes that need to be made to satisfy the president,” Sen. John CornynJohn CornynGOP divided over impeachment trial strategy GOP senators balk at lengthy impeachment trial Overnight Health Care: Trump officials making changes to drug pricing proposal | House panel advances flavored e-cig ban | Senators press FDA tobacco chief on vaping ban MORE (R-Texas), the No. 2 Republican, said. “I think the president's support is going to be key.”