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Obamacare thrown a lifeline by bipartisan deal on subsidies Bipartisan Obamacare deal sours soon after announcement
(about 20 hours later)
Two top senators say they have reached a bipartisan deal to extend subsidies for Obamacare, days after the White House said it would end them. A bipartisan deal to extend Obamacare subsidies appears to have soured within a day of its announcement after opposition from Republican lawmakers.
The federal payments to health insurers, which help offset costs for low-income Americans, would continue for two more years under the proposal. Two US senators announced a short-term deal to continue federal payments to health insurers that help offset costs for low-income Americans.
US President Donald Trump's decision to end the payments came after the Justice Department said they were not legal. The move came after President Donald Trump said he would cancel the funding in an effort to weaken Obamacare.
Critics warned the move would destabilise the healthcare markets. He said he was involved with the deal but later criticised the payments.
Opponents said it would lead to higher premiums, leaving more people uninsured and causing some insurers to abandon unprofitable markets. At a dinner on Tuesday night, Mr Trump said he commended the bipartisan work on the agreement but added that Congress needed to find a more permanent solution.
But on Tuesday Republican Senator Lamar Alexander, the chairman of the Senate health committee, and Senator Patty Murray, the panel's top Democrat, said they had struck an agreement to provide a short-term solution to continue the funding. "I continue to believe Congress must find a solution to the Obamacare mess instead of providing bailouts to insurance companies," he said.
Earlier on Tuesday Republican Senator Lamar Alexander, the chairman of the Senate health committee, and Senator Patty Murray, the panel's top Democrat, said they had struck an agreement to provide a temporary solution to continue the funding.
Mr Trump said he supported the deal on Tuesday at a White House news conference with Greek Prime Minister Alexis Tsipras.
But the move drew scrutiny from members of Mr Trump's party, including lawmaker Mark Walker, who heads the influential Republican Study Committee.
"The GOP should focus on repealing & replacing Obamacare, not trying to save it. This bailout is unacceptable," he said in a statement.
Tom Cole, a Republican lawmaker from Oklahoma explained: "None of our guys voted for Obamacare."
"They're not very interested in sustaining it," he told the Washington Post.
Meanwhile, Republican Susan Collins, a moderate who helped kill earlier efforts to repeal and replace the signature 2010 Democratic healthcare law, criticised the White House for shifting its stance.
"Now, the White House is sending conflicting messages," she told CNN on Wednesday.
Republican House of Representatives Speaker Paul Ryan appeared to have no interest in the deal.
"The speaker does not see anything that changes his view that the Senate should keep its focus on repeal and replace of Obamacare," his spokesman Doug Andres told Reuters news agency.
The payments - which the White House chose to end last week after Mr Trump's Department of Justice determined them to be illegal - would continue for two more years under the proposal.
Will Congress back deal?Will Congress back deal?
Analysis by Anthony Zurcher, BBC North America reporterAnalysis by Anthony Zurcher, BBC North America reporter
Reports of Obamacare's death have been greatly exaggerated.Reports of Obamacare's death have been greatly exaggerated.
Hours after pronouncing the Democrats' signature healthcare legislation effectively dead and just minutes after saying cost-sharing payments to insurers was a government handout to boost their stock prices, President Trump backed a bipartisan deal that would keep the system afloat and continue the subsidies for "one to two years".Hours after pronouncing the Democrats' signature healthcare legislation effectively dead and just minutes after saying cost-sharing payments to insurers was a government handout to boost their stock prices, President Trump backed a bipartisan deal that would keep the system afloat and continue the subsidies for "one to two years".
The president insists the end goal is still legislation that sends federal healthcare funds to the states to manage - but prospects, for now, appear dim.The president insists the end goal is still legislation that sends federal healthcare funds to the states to manage - but prospects, for now, appear dim.
Instead, the next healthcare battle in Congress could be over securing enough support for a bipartisan compromise bill to overcome resistance from hard-liners on the left and right.Instead, the next healthcare battle in Congress could be over securing enough support for a bipartisan compromise bill to overcome resistance from hard-liners on the left and right.
Chances in the Senate seem good, but the House of Representatives - with its arch-conservative Freedom Caucus still seeking full repeal - will be a heavier lift. There's an informal tradition in the chamber that Republican leaders only hold votes on legislation supported by a majority of their party members.Chances in the Senate seem good, but the House of Representatives - with its arch-conservative Freedom Caucus still seeking full repeal - will be a heavier lift. There's an informal tradition in the chamber that Republican leaders only hold votes on legislation supported by a majority of their party members.
Mr Trump prompted a crisis last week by ending government payments to keep insurance premiums down for low-income Americans, but he may have helped at least temporarily break a congressional logjam. There's a certain art to that deal.Mr Trump prompted a crisis last week by ending government payments to keep insurance premiums down for low-income Americans, but he may have helped at least temporarily break a congressional logjam. There's a certain art to that deal.
"This takes care of the next two years," Mr Alexander said on Tuesday. "After that, we can have a full-fledged debate on where we go long-term on healthcare." Follow @awzurcher
The pair had reportedly been working on a plan for weeks after the Republican-led Congress repeatedly failed to repeal and replace former President Barack Obama's 2010 Affordable Care Act. Critics have warned that Mr Trump's decision would destabilise the healthcare markets by leading to higher premiums.
Under the deal, states would also be given more flexibility to waive some Obamacare policy requirements to allow consumers to buy cheaper plans. They argue it would leave more people uninsured and cause some insurers to abandon unprofitable markets.
Mr Trump said he supported the deal on Tuesday at a White House news conference with Greek Prime Minister Alexis Tsipras. Neither Republican leaders of the Senate or House of Representatives have yet scheduled a vote on the compromise deal, which would allow states more flexibility to waive some Obamacare policy requirements to allow consumers to buy cheaper plans.
"It is a short-term solution so we don't have this very dangerous little period," the president said, adding that the White House had been involved in the deal. Senator Collins said she did not know if Senate Majority Leader Mitch McConell would schedule a vote but that "if it comes to the floor, I think the votes are there".
Last week, the president took action to weaken Obamacare by announcing he would end the payments.Last week, the president took action to weaken Obamacare by announcing he would end the payments.
He also signed an executive order to allow the sale of insurance plans that are exempt from some Obamacare regulations.He also signed an executive order to allow the sale of insurance plans that are exempt from some Obamacare regulations.
The directive allows small businesses and some individuals to band together and form associations to sponsor coverage across state lines.The directive allows small businesses and some individuals to band together and form associations to sponsor coverage across state lines.