Several Republican senators left a closed-door luncheon Tuesday pessimistic about the chances of reaching a bipartisan deal to stabilize Obamacare’s markets.
Democratic and Republican negotiators are trying to find consensus on how much flexibility to give states in exchange for insurer subsidy payments. Republicans are fighting resistance from conservatives and a skeptical House to reach an agreement as Obamacare insurers finalize their rates for 2018.
Sen. Lamar Alexander, R-Tenn., gave a short briefing on the status of talks during the GOP conference luncheon. The chairman of the Senate Health, Education, Labor and Pensions Committee told reporters that no agreement has been reached and that the level of flexibility to give states to waive Obamacare regulations is a key sticking point.
“The issue is basically getting Republicans and Democrats to agree on the definition of giving meaningful flexibility to states to approve insurance policies as a way of lowering healthcare costs,” he told reporters Wednesday. “We haven’t found a consensus on that yet.”
Other Republicans left the meeting dismayed at the lack of consensus.
“We just hoped that we would be able to find some consensus that would enable states to be innovative and at the same time bring back in the cost-sharing reduction payments [to insurers],” said Sen. Mike Rounds, R-S.D. “Unfortunately at this time we don’t have it. Without it, there will be chaos in the market.”
Sen. Lindsey Graham, R-S.C., said there “doesn’t seem to be much coming of it. I want to find a way to avoid more chaos than already exists.”
Graham and Sen. Bill Cassidy, R-La., led a last-ditch attempt to repeal Obamacare that collapsed last week after three Republican senators opposed the bill, enough to kill the measure.
Talks between Alexander and Sen. Patty Murray, D-Wash., were scuttled before the bill collapsed. Democrats charged it was to ensure nothing interfered with Republicans’ attempt at overhauling Obamacare. Talks resumed Sept. 26, the same day GOP leadership shelved the Graham-Cassidy bill.
Alexander told reporters that the sooner Republicans and Democrats reach a deal, “the more likely we are to affect rates in 2018.”
Obamacare insurers are finalizing rates for 2018 and factoring in the uncertainty surrounding the cost-sharing payments, which reimburse insurers for lowering co-pays and deductibles for low-income Obamacare customers.
The Trump administration has not guaranteed that it would make the payments in 2018, and insurers have been pleading for certainty in their funding to reduce premiums.
Republicans are already facing headwinds, with key conservatives such as Sen. Ted Cruz, R-Texas, likely opposed to any short-term deal.
