LOS ANGELES (OC).–President Donald Trump knows that something must be done before the end of the year to fix expiring Obamacare subsidies, most likely too late to come up with a fresh alternative or new plan, something bandied about for years. When Trump ran in 2016, he campaigned on repealing-and-replacing Obamacare but nothing happened, largely because there’s only a finite way to skin a cat. When it comes to government-funded health care, there’s little options open other than continuing the government funding. Office of Management and Budget Director Russell Vought was overly zealous when he cut $1.5 trillion in Medicaid and Obamacare funding in the July 4 Big Beautiful Bill. That bill turned into a nightmare for Republicans when Democrats rebelled Oct. 1, telling the GOP to replace the funds or prepare for a nuclear winter for a government shutdown.
House and Senate Republicans haven’t come to grip with what must be done now to prevent a slow moving train wreck with Obamacare subsidies expiring at year’s end. There’s just no time to come up with Trump’s plan to pay Obamacare subscribers directly rather than insurance companies that collect premiums on policies. But what’s the difference with a government outlay of cash paying individuals or insurance companies? Clearly, someone has to foot the bill one way or another, with all alternative programs left for some murky future but not ready to go right now. House Minority Leader Hakeem Jeffries (D-N.Y.) wants a three-year extension of Obamacare subsidies, something not likely to happen. Getting a one-year extension would be far more likely. Expiring Obamacare subsidies could spike premiums 100% or more without government funding.
Republicans keep talking about how Obamacare has failed but just not for the 25 million subscribers that like having government-funded health insurance. “Obamacare has failed us. Cost has skyrocketed,” said Sen. Rick Scott (R-Fl.). “The way to fix it is, any Obamacare subsidies go to the individual through an HSA and then allow people to buy whatever plan that fits their family,” Scott said, repeating a typical GOP talking point about Health Savings Accounts. “We’re gonna pay a lot of money to the people. They’re gonna go out an buy their own health care, and we’re gonna forget this Obamacare madness,” Trump said while signing the bill to reopen the government. Trump and Scott have no clue how to replace Obamacare, only talking about HSA, something bandied about for years. Obamacare allowed major insurers to sell policies knowing they’d get paid by the government.
Within the GOP House caucus, there are still more opposition to government-funded heath care like Medicare and Obamacare. ACA money should “absolutely” expire by year’s ending, causing widespread hardship to subscribers and health care businesses. “There’s not going be any deal cut,” Norman said, putting House Speaker Mike Johnson on notice that member of his caucus want to end Obamacare. “We should look at how we’re going to lower costs without having to inject more federal dollars into it,” said Rep. Kevin Hern (R-Ok.) “The Democrat solution is to throw more federal dollars at it. We don’t have the access to that,” pretending the money was not in budget before Russell Vought took it out. Norman and Hem oppose the government spending more cash than it has without running yearly deficits or adding to the national debt.
House or Senate Republicans haven’t come to grips with the growing crisis over Medicaid and Obamacare, potentially leaving millions of subscribers in jeopardy. Whethr House or Senate Republicans like it or not, Medicaid and Obamcare have been integral parts of the national health care system for decades. Obamacare started in 2010 with the revolutionary idea that all subscribers, regardless of health status, are entitled to health insurance. Since Obama signed the ACA into law in 2010, they industry flourished into the current 25 million subscribers. Obamacare differs from Medicaid because it’s built off a PPO model, where individuals purchase government-subsidized insurance policies as opposed to Medicaid’s HMO model, bringing subscribers into vertically integrated health structures. Obamacare was anything but a failure since its inception.
Republicans and Democrat have a brief window between now and year’s end to find the federal funds necessary to extend government subsidies at least one year. While some House and Senate Republicans,oppose federal health care subsidies, it’s not fair to subscribers or to health related businesses to pull the rug out from underneath the program. Trump and other GOP plans to increase Health Saving Accounts won’t solve the immediate problem of restoring funding to the Obamacare system. “Republicans must finally come up with a plan to address affordability, said Rep. Marjorie Taylor Greene (R-Ga.). ‘Ignoring this crisis will not only leave the American people in a crisis but will likely lead to losses in the midterms. We have the majority, it’s time to solve this problem the Democrats created,” Greene said. Republicans can no longer ignore the problem.
About the Author
John M. Curtis writes politically neutral commentary analyzing spin in national and global news. He’s editor of OnlineColumnist.com and author of Dodging The Bullet and Operation Charisma.
