WH Health Care Plan Hits GOP Divisions 11/26 06:16

   A health care proposal circulated by the White House in recent days is 
running into the reality of Republican divisions on the issue -- a familiar 
struggle for a party that has been trying to scrap or overhaul the Affordable 
Care Act for the past 15 years.

   WASHINGTON (AP) -- A health care proposal circulated by the White House in 
recent days is running into the reality of Republican divisions on the issue -- 
a familiar struggle for a party that has been trying to scrap or overhaul the 
Affordable Care Act for the past 15 years.

   The tentative proposal from President Donald Trump would extend expiring ACA 
subsidies for two years while adjusting eligibility requirements for 
recipients. The plan has so far been met with a stony silence on Capitol Hill 
as Republicans debate among themselves whether to overhaul the law, tweak it or 
simply let the subsidies expire.

   It's unclear now when the White House plan might be released, or if it will 
be released at all.

   The Republican indecision comes as the COVID-era tax credits are set to 
expire Jan. 1, creating sharp premium increases for millions of Americans. 
Democrats who shut down the government for six weeks over the issue are 
demanding a straight extension with no changes, though some indicated they 
could support a plan similar to the one circulated by the White House.

   But support may be harder to find in the GOP conference, where many 
lawmakers say costs are still too high and have been eager to make another run 
at repealing the ACA. The last effort in 2017 failed when Republicans couldn't 
decide on how to provide coverage to millions of Americans who depend on 
government-run marketplaces for their health care. It's a dilemma that persists 
for the party after record numbers signed up for coverage this year.

   Senate Majority Leader John Thune, R-S.D., promised a group of moderate 
Democrats a vote on the ACA tax credits by mid-December in exchange for their 
votes to end the government shutdown. But it's unclear, so far, whether that 
arrangement will lead to a solution.

   Bipartisan compromise?

   Health care has long been one of the most politically fraught topics on 
Capitol Hill, so a bipartisan compromise seems unlikely. But the coming price 
spikes have motivated some lawmakers to look for points of agreement.

   Republican Sen. Thom Tillis of North Carolina said last week that he hopes 
the subsidies are extended.

   "I'm sure some of my colleagues will be mad at me for saying this -- if we 
don't address the subsidies issue in December, I don't think it's going to get 
addressed next year," Tillis said, adding that Democratic campaigns will be 
"just churning up all the very sympathetic stories" if it isn't fixed.

   The draft White House proposal would put new income limits on the tax 
credits -- at 700 percent of the federal poverty level, according to two people 
with knowledge of the proposal who requested anonymity to discuss it. The White 
House would also require those on Obamacare, regardless of the type of 
coverage, to pay some sort of premium for their plans. That would effectively 
end zero-premium plans for those with lower incomes, addressing a concern from 
Republicans who say the program has enabled fraud.

   Some Democrats have suggested they are open to those ideas as a part of 
broader negotiations. "I'm glad the president is reportedly considering a 
serious proposal," said New Hampshire Sen. Jeanne Shaheen, one of the Democrats 
who voted to end the shutdown.

   Some Republicans have signaled support as well. Nebraska Rep. Mike Flood, 
the chairman of the business-oriented Republican Main Street Caucus, said in a 
statement that the group supports "President Trump's ongoing efforts to address 
the ACA tax credit cliff with an extension."

   Several bipartisan bills in the House would extend the ACA credits for two 
years, with changes such as income limits for the enhanced credit. "I think two 
years is really the sweet spot where everybody is OK," said Pennsylvania Rep. 
Brian Fitzpatrick, a co-chair of the bipartisan Problem Solvers Caucus.

   Premium spikes on Jan. 1

   Still, House Speaker Mike Johnson, R-La., has declined to say whether he 
will allow a vote on a health care bill. Many other members of his GOP 
conference want to see the subsidies eliminated or the underlying law 
overhauled. In addition, Thune and other Republicans have said they want new 
language on abortion restrictions if they pass an extension -- a dealbreaker 
for Democrats.

   If Congress doesn't act, the enhanced premium tax credits that have helped 
many Americans pay for Affordable Care Act health insurance plans will 
disappear. And premiums could more than double for subsidized enrollees, 
according to an analysis by the health care research nonprofit KFF.

   Signups for next year's insurance began on Nov. 1, meaning that many 
Americans are already planning for the higher costs. Democrats who forced the 
shutdown at the beginning of October had hoped to negotiate an extension before 
open enrollment began.

   "When people's monthly payments spike next year, they will know it was 
Republicans that made it happen," Senate Democratic leader Chuck Schumer said 
last week.

   Republicans could go at it alone

   As Democrats elevated the health care issue during the shutdown, some 
Republicans saw an opportunity to renew their efforts to overhaul the law. GOP 
lawmakers in the House and Senate have been meeting to find consensus, though 
they haven't found it yet.

   Among the GOP ideas are separate proposals from Florida Sen. Rick Scott and 
Louisiana Sen. Bill Cassidy to use savings accounts to either shop for 
insurance or defray out-of-pocket costs. Scott's legislation would create what 
he called "Trump Health Freedom Accounts" and make some changes to the health 
care law, including by allowing consumers to shop across state lines. Cassidy's 
narrower bill would create new savings accounts just to replace the enhanced 
subsidies that are expiring.

   The draft of the White House plan, meanwhile, would allow those in 
lower-tier plans, such as the bronze-level or catastrophic plans, to put money 
into health savings accounts.

   Those proposals are unlikely to win over Democrats. Schumer said last week 
that the savings accounts "will go nowhere in the Senate."

   Skeptical that the two parties will ever agree, some Republicans have 
suggested that they try to pass a health care package using budget maneuvers 
similar to Trump's " Big Beautiful Bill " of tax and spending cuts. If it 
worked, they could pass the legislation with zero Democratic votes -- a 
politically risky strategy that could take months, well into the midterm 
election year.

   It all depends on Trump

   Some Republicans may be waiting for clear direction from Trump, who has been 
sending mixed signals about what he wants.

   For several weeks, Trump appeared to be backing the savings accounts on 
social media, posting as recently as Nov. 18 that "THE ONLY HEALTHCARE I WILL 
SUPPORT OR APPROVE IS SENDING THE MONEY DIRECTLY BACK TO THE PEOPLE, WITH 
NOTHING GOING TO THE BIG, FAT, RICH INSURANCE COMPANIES, WHO HAVE MADE 
$TRILLIONS, AND RIPPED OFF AMERICA LONG ENOUGH."

   He added: "Congress, do not waste your time and energy on anything else."

   Trump reiterated that message Tuesday evening.

   "Don't give the money to the insurance companies," he told reporters Tuesday 
evening. "You give the money to the people."