Healthcare Negotiations Continue

Negotiations among a bipartisan group of Senators to temporarily extend the now-expired ACA enhanced premium tax credits have encountered significant hurdles, primarily due to disputes concerning Hyde Amendment provisions that restrict the use of federal funds for abortion. Sen. Moreno (R-OH), who has taken a leadership role in the discussions, along with Senate Majority Leader Thune (R-SD), have both emphasized the need to reach a resolution by the end of the month.

Last Thursday, the White House unveiled its own healthcare plan. This plan broadly outlines provisions aimed at codifying President Trump's agreements with pharmaceutical companies to lower prescription drug costs, fund health savings accounts for low-income taxpayers, and require greater price transparency from health insurers. However, the plan does not include an extension of the ACA subsidies.

The President’s plan is unlikely to garner sufficient bipartisan support for enactment through regular legislative procedures. While Republicans might attempt to pass certain provisions via the partisan budget reconciliation process, they would be unable to implement the entire package in this manner. Additionally, many senior Republicans oppose the key provision that would codify the President’s “most favored nation” drug pricing policies, and other elements of the plan do not qualify for inclusion under the Senate’s budget reconciliation rules. Furthermore, with the GOP's unfavorable polling on healthcare, focusing on these issues in the lead-up to the midterm elections could be politically risky.