House Republicans pushed a plan Wednesday to extend Obamacare’s subsidies for the rest of the year if the Supreme Court this month says dozens of states are no longer eligible for the tax credits that have helped millions afford insurance under the law.
GOP members said the plan, outlined behind closed doors as a “work in progress,” isn’t perfect but offers a firm starting point to lead the nation away from President Obama’s signature law, should the justices strike the subsidies in at least 34 states that rely on the federal HealthCare.gov website.
Starting in 2016, states could opt out of the health law and use a federal block grant to cover their residents as they see fit. States that don’t opt out could continue to receive Obamacare’s assistance and buy plans on and off the law’s exchanges.
The framework would expire in 2017, forcing the new president to replace Obamacare entirely.
“I think it’s a good plan. It’s a good start,” said Rep. Charles Boustany, Louisiana Republican.
The plan scraps Obamacare’s insurance mandates on individuals and employers, although the package is likely to face an impasse with President Obama and his veto pen.
The justices could say as soon as Thursday whether the administration is lawfully subsidizing insurance for 6.4 million Americans in states that rely on the federal HealthCare.gov website.
President Obama and his Democratic allies say the Affordable Care Act is fine as written, and that residents of every state should enjoy the subsidies. They’re set to push for a one-sentence fix if the justices say the law’s text restriction subsidies to states that set up their own health exchanges.
Republicans, meanwhile, would use a ruling that strikes the subsidies to move away from Obamacare.
Congressional Republicans on both sides of the Capitol huddled Wednesday to plot their response to the highly anticipated ruling.
The closed-door sessions offered GOP lawmakers their most extensive talks to date on a smorgasbord of policy options, although some are reluctant to lock in Obamacare’s subsides at all, fearing it would send the wrong message after years of trying to repeal the law.
But they also don’t want to suffer political blowback for cheering on the case, known as King v. Burwell.
Without the subsidies, healthy enrollees may drop coverage first, sending state insurance markets into a tailspin.
Members were broadly supportive of the framework proposed by Ways and Means Chairman Paul Ryan, Wisconsin Republican, and other chairmen, although the fractious House GOP caucus has struggled to agree on many issues.
Republicans plan to use a budget process known as “reconciliation” to push their plan. Under procedural rules, the legislation could pass the Senate on a majority vote but would still face Mr. Obama’s veto.
“Ultimately, the president would have to decide whether he would sign it,” said Rep. John Fleming, Louisiana Republican. “So we may end up with a standoff.”
• Tom Howell Jr. can be reached at thowell@washingtontimes.com.
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