Fate of Cruz’s healthcare proposal hinges on CBO

The Congressional Budget Office appears to hold the fate of Ted Cruz’s conservative amendment to the Senate health bill in its hands.

A score from the CBO is expected on the amendment and the rest of a revised bill by early next week. The amendment, which lets insurers sell plans that don’t comply with Obamacare’s insurer mandates as long as they sell a plan that does, has wide support among conservatives but is viewed skeptically from some centrists because of questions about protections for people with pre-existing conditions.

“I think the importance of hearing from CBO about how that scores and what impact it has will shape people’s views of that,” said Sen. John Thune, R-S.D., a member of GOP leadership. “Obviously it is important for a number of our conservative members who want to see it in the final product. We have other members who have a different point of view.”

A revised health bill is expected by Thursday. Sen. John Cornyn, R-Texas, the second-ranking GOP senator, said that the Cruz amendment remains in the mix to be included in the revised bill expected this Thursday.

Cruz told reporters after leaving a closed-door GOP luncheon Tuesday that his amendment has support from the White House.

“The reason is that it is the necessary ingredient to getting the votes that we have to have to follow through on our commitment to repealing Obamacare,” he said.

While conservatives are on board with the amendment, there remain lingering concerns from senators about protections for people with pre-existing conditions.

“We continue to have discussions within members about how best to lower premiums,” Cruz said in response to a question on pre-existing condition protections on Tuesday.

Some experts have said the amendment could lead to more federal spending because of higher costs for the Obamacare-compliant plans. Tax credits that help lower insurance costs go up with premiums, and experts say could skyrocket under the Obamacare plans.

About 1.5 million people with pre-existing conditions such as cancer or diabetes could face higher premiums under the amendment, according to an analysis from the nonpartisan Kaiser Family Foundation.

It estimates that 1.5 million people in the individual market, which is for people who don’t get insurance via work, that have pre-existing conditions but don’t qualify for tax credits under the Senate bill.

While people who get credits are protected from premium hikes, those “ineligible for credits would not be protected,” the foundation said.

Sen. Mike Rounds, R-N.D., said that he talked with Cruz about an idea he has to spread the risk around among the Obamacare and non-Obamacare plans.

Rounds’ idea is to create a ratio that both types of plans have to maintain.

“It leaves a ratio in place so that if you decrease prices on one plan you have to decrease prices on the other plan as well,” he said. “You think twice about making a real low-ball offer in one plan and letting the other plan go bankrupt.”

While Rounds said that he has talked with Cruz about his idea, it remains unclear whether it will make it into the amendment or was among the language sent to CBO to be scored.

Related Content