Senate Republicans have approved the repeal of ObamaCare’s individual mandate as part of their tax-cut bill, a major step forward toward ending an unpopular part of the healthcare law.
“Families ought to be able to make decisions about what they want to buy and what works for them –not the government,” Sen. John BarrassoJohn Anthony BarrassoOvernight Energy: Panel advances controversial Trump nominee | Ex-coal boss Blankenship to run for Senate | Dem commissioner joins energy regulator Congress, here's a CO2-smart tax fix to protect, create jobs Senate panel advances controversial environmental nominee MORE (R-Wyo.) said, hailing the accomplishment.
“I believe if people don’t want to buy the Obamacare insurance, they shouldn’t have to pay a tax penalty to the IRS.”
The Senate tax bill must still be reconciled with House legislation that does not include the mandate’s repeal. But that is unlikely to be a major issue given support in the GOP conference for repealing the mandate.
No Democrats in either chamber voted for the GOP tax bills.
It’s unclear what repeal of the mandate will mean for ObamaCare.
Many experts and healthcare groups warn that repeal will destabilize ObamaCare markets, leading to premium increases or insurers simply dropping out of certain areas. Without a financial penalty under the mandate for lacking health coverage, there is less incentive for healthy people to sign up and balance out the costs of the sick.
Some experts counter that the effects will not be as severe as others say, given that there are doubts the mandate had a strong effect on people to begin with.
Moderate Republicans are now pushing for bipartisan ObamaCare fixes to help stabilize insurance markets, setting up a showdown with conservatives.
The mandate’s repeal was not part of the original tax reform measure released by the Senate Finance Committee, and Chairman Orrin HatchOrrin Grant HatchSusan Collins is swing vote on tax bill GOP sets 23 percent deduction for small businesses to save tax bill Top GOP senators say they have the votes to pass tax bill MORE (R-Utah) previously said he wanted to keep the divisive health care issue separate from taxes.
But President Trump, along with Senate conservatives such as Sen. Tom CottonTom CottonTillerson may be out, but Trump is the State Department’s real problem Time for limited US military action against North Korea Tillerson under pressure after White House plan leaks MORE (R-Ark.), made a vocal public push for its inclusion.
Repealing the mandate also saves $300 billion over ten years in subsidies that otherwise would have been spent on consumers, according to the Congressional Budget Office, providing savings for the tax cuts.
The CBO estimates that 13 million fewer people will have health insurance over the next decade without the mandate, and it projects that premiums will rise 10 percent. But it also projects markets will remain stable in “almost all areas of the country.”
While three Republican senators, John McCainJohn Sidney McCainGOP will sell out middle class for a win on tax ‘reform’ Overnight Finance: GOP to reduce tax relief by 0B to win over deficit hawks | Republicans eye two-week spending bill | Fed official urges caution on digital currency | Security of auditing system under scrutiny Don’t sneak Arctic oil drilling into tax bill MORE (R-Ariz.), Susan CollinsSusan Margaret CollinsSusan Collins is swing vote on tax bill Top GOP senators say they have the votes to pass tax bill GOP will sell out middle class for a win on tax ‘reform’ MORE (R-Maine) and Lisa Murkowski
Lisa Ann MurkowskiOvernight Finance: GOP to reduce tax relief by 0B to win over deficit hawks | Republicans eye two-week spending bill | Fed official urges caution on digital currency | Security of auditing system under scrutiny Don’t sneak Arctic oil drilling into tax bill Senate GOP incorrectly tweets that it passed tax bill MORE (R-Alaska) defeated an ObamaCare repeal bill over the summer that included mandate repeal, this time they put aside their concerns.
Murkowski wrote that repealing the mandate didn’t hurt the structure of the health law, but allowed people the “freedom” to choose whether to enroll in the healthcare law,..
Collins said she had won a commitment from Trump and Senate Majority Leader Mitch McConnellAddison (Mitch) Mitchell McConnellTop GOP senators say they have the votes to pass tax bill Angus King on GOP tax push: 'To call this a circus would be an insult to circuses' McConnell works to salvage tax bill MORE (R-Ky.) to pass two bipartisan ObamaCare fixes before the end of the year. She hopes those bills will counteract the increase in premiums from mandate repeal.
One of the bills, from Sens. Lamar AlexanderAndrew (Lamar) Lamar AlexanderOvernight Health Care: House conservatives won't back spending bill with ObamaCare payments | State officials worry about mandate repeal | Trump donates paycheck to fight opioids House conservatives won't back spending bill with ObamaCare payments Collins: Health-care fix will pass before tax bill MORE (R-Tenn.) and Patty Murray
Patricia (Patty) Lynn MurrayOvernight Health Care: House conservatives won't back spending bill with ObamaCare payments | State officials worry about mandate repeal | Trump donates paycheck to fight opioids House conservatives won't back spending bill with ObamaCare payments Collins: Health-care fix will pass before tax bill MORE (D-Wash.) funds key payments to insurers, while the other measure provides funding known as reinsurance to pay for some sick people’s claims and help bring down premiums.
The Alexander-Murray bill does not directly deal with the effects of repealing the mandate, and some experts argue there would have to be more reinsurance funding than currently proposed to make up for mandate repeal.
It’s unclear if either fix will actually become law, as House conservatives oppose the measures as propping up ObamaCare.
Rep. Fred UptonFrederick (Fred) Stephen UptonHouse GOP to prioritize ethanol, pipeline legislation GOP: House to vote Friday on opioid bill During Brain Awareness Week and beyond, collaboration is key MORE (R-Mich.), a member of the moderate Tuesday Group, said he supports passing Alexander-Murray to try to counteract the premium increases from mandate repeal. But he acknowledged conservatives oppose that move, meaning he thinks the initial House version of a government funding bill will not have the health fix attached.
He thinks the Senate will add it later, setting up a choice for the House.
“They'll toss it back to us and either you take it like that or you shut the government down,” Upton said.
Trump appears eager to return to the full repeal and replacement push after the final tax bill passes.
“We will Repeal & Replace and have great Healthcare soon after Tax Cuts!” he tweeted in late October.
GOP leaders have not committed to revisiting the issue in an election year, though Sen. John KennedyJohn Neely KennedyMORE (R-La.) said he thought mandate repeal brings full repeal and replacement a step closer.
“I think it's going to make our third attempt at health care reform easier,” Kennedy said.