Bipartisan deal on Obamacare subsidies fades as Republicans push HSA plan
As the Senate approaches a crucial vote next week on extending Obamacare subsidies, the prospects for a bipartisan agreement are diminishing rapidly. This situation follows a recent government shutdown that ended when a faction of Senate Democrats broke ranks with Senate Minority Leader Chuck Schumer, D-N.Y., after receiving assurances from Senate Majority Leader John Thune, R-S.D., that lawmakers would have the opportunity to vote on extending the subsidies. However, with Thune’s deadline looming, bipartisan discussions have stalled, casting doubt on the likelihood of a cooperative solution. Thune himself acknowledged that while a vote will occur, the discussions may not yield a comprehensive agreement in time, as the necessary 60 votes to overcome a filibuster remain elusive.
The ongoing negotiations reflect a significant divide between Republicans and Democrats regarding the future of the subsidy program. Republicans are advocating for substantial reforms, including proposals to redirect funds from subsidies to Health Savings Accounts (HSAs), a strategy previously endorsed by former President Donald Trump. In contrast, Democrats are pushing for a straightforward extension of the subsidies, albeit with some willingness to consider reforms either immediately or in the future. With the expiration of the subsidies imminent, the possibility of a side-by-side vote on competing Democratic and Republican proposals is being discussed, although support for this approach appears tepid. Senators like Tammy Baldwin, D-Wis., express skepticism about the sincerity of Republican plans, while Republicans like Bill Cassidy, R-La., are trying to articulate a vision for a more sustainable health care system that addresses the financial burdens faced by older Americans.
As the deadline approaches, the urgency for a resolution intensifies, with some senators expressing the need for former President Trump to intervene and encourage a compromise among Senate Republicans. The stakes are high; failure to extend the subsidies could result in significant premium increases for millions of Americans, a scenario that both parties are keen to avoid. Senator Angus King, I-Maine, highlighted the potential political ramifications for Republicans if they fail to act, suggesting that a simple extension with modest reforms would be the most straightforward path forward. With each passing day, the window for a bipartisan solution narrows, leaving lawmakers scrambling for a viable path as the vote date draws near.
The chances of a bipartisan solution to expiring
Obamacare subsidies
are growing slimmer with each passing day as the Senate gears up for a vote next week on extending the credits.
Senate Democrats made the subsidies the focal point of their position during the government shutdown, which ended only after a group of Democrats broke from Senate Minority Leader
Chuck Schumer
, D-N.Y., based largely on a guarantee from Senate Majority Leader John Thune, R-S.D., that lawmakers would get a chance to vote on extending the subsidies.
And next week is Thune’s deadline to get a proposal on the floor, but the likelihood that it is bipartisan is fast fading.
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“I mean, my assumption is that by next week, when we have to have that vote, that we might not be far enough along in the bipartisan discussions. But my assumption is we’ll still have a vote of some kind, because that’s what we’re committed to do,” Thune said.
Bipartisan talks have been ongoing, both during the shutdown and in the weeks after. But those have yet to yield a plan that could muster the 60 votes necessary to break through the filibuster in the upper chamber.
Republicans want to see reforms to the program and are floating proposals that would see money from the subsidies that normally flows to insurance companies be sent directly to Health Savings Accounts (HSAs) — a plan previously floated by President
Donald Trump
.
Democrats, however, want a cleaner extension of subsidies but are open to reforms either up front or down the line.
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Sen. Roger Marshall, R-Kan., told Fox News Digital he’s been involved in talks with colleagues across the aisle, but those discussions had recently slowed. He agreed that a bipartisan solution was likely out of reach by next week’s vote.
“I mean, I would love to see that, but it’s not realistic, and I’m putting my eggs into the basket for Jan. 30, a nice bipartisan package,” he said.
At that point, however, the subsidies will have expired.
That leaves the option of a possible side-by-side vote, with Democratic and Republican proposals put on the floor to see which survives. But that idea may not have much support, either.
“I don’t know about whether they would have the appetite for a side-by-side,” Sen. Tammy Baldwin, D-Wis., said. “We certainly have not seen Republicans come up with any sincere plans to help alleviate the concerns.”
Senate Health, Education, Labor and Pensions Chair
Bill Cassidy
, R-La., who is leading Republicans’ negotiations for a plan on the subsidies, scoffed that if Democrats spoke with him, “You’re going to be hearing a lot of sincerity.”
Cassidy’s plan revolves around HSAs, which he sketched out in broad terms to Fox News Digital. Under his plan, HSAs would be pre-funded with, “say $2,000,” that he argued would see Americans pay roughly the same health insurance deductibles and act as a much more workable day-to-day policy moving forward.
He noted that Democrats see where he’s coming from, but that he couldn’t say if he’s got “their vote yet.”
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“If you look at the numbers, there are people who are in their 50s and 60s who will really, like, pay a third of their income for insurance on the exchange, and so the Democrats have set it up so there’s a cliff at the end of this year, and we’re trying to avoid that cliff,” Cassidy said.
“So [we’re] looking for a way that can take care of those folks but begin to transition to a system which is much more workable,” he continued. “The Obamacare subsidy system is not workable.”
Cassidy and Senate Finance Committee Chair Mike Crapo, R-Idaho, pitched ideas and options during the Senate GOP’s closed-door lunch on Tuesday, but there still wasn’t a solid consensus on a path forward on a Republican proposal.
Sen. John Kennedy, R-La., said it would take “divine intervention” for Republicans to agree on a plan to vote on by Thune’s deadline next week.
“Have you ever heard of a Rorschach test where it’s smeared all over the wall? That’s kind of where we’re at,” Kennedy said.
Members on both sides of the aisle believe that Trump should get more involved, too, given that anything that passes the Senate and works through the House would need his signature to become law.
Sen. Angus King, I-Maine, one of the eight Democratic caucus members that voted to reopen the government with Republicans, said that it would help if Trump told the
Senate GOP
to make a deal.
“I think the easiest, clearest thing would be a straight extension with some modest reforms, and then we can move on,” King said. “And frankly, if it doesn’t happen, then the Republicans can own massive premium increases. And I don’t know why they would want to do that.”
Eric
Eric is a seasoned journalist covering US Politics news.
