Republicans Will Extend Obamacare Subsidies

Can I be completely honest with you? It's not a question of whether Republicans will extend pandemic-era Obama subsidies. It's really a question of how much of the political and moral high ground they will surrender and whether Republican voters will forgive them when they do.

I began to see the handwriting on the wall when President Trump signaled to reporters that he’d “make the right deal” if it led to “good things.” Democrats saw this as a small opening that the president might be amenable to striking a deal.

Aides to the president probably told him soon afterward that his remarks were undercutting the negotiating positions of Senate Majority Leader John Thune (R-SD) and House Speaker Mike Johnson (R-LA), and within days, the president walked back those comments.

Before the shutdown, the president had a scheduled meeting with Senate Minority Leader Chuck Schumer (D-NY) and House Minority Leader Hakeem Jeffries (D-NY) to try to avert it. Still, he abruptly canceled it, saying, “No meeting with their congressional leaders could possibly be productive.” Reports cited fears from Johnson and Thune that the president, the consummate deal maker, may strike a deal with Democrats they’d be forced to live with. Ultimately, the president did meet with Schumer and Jeffries, but the meeting did not bear fruit.

Vance, Johnson Hold Presser, Rip and Expose Democrats for Government Shutdown Gambit

President Trump and Republican congressional leadership understand that if enhanced Obamacare subsidies expire next year, millions of voters, including middle-class voters, will see their premiums skyrocket right before the midterm elections.

You know that Democrats will milk this situation for all its worth by running tear-jerker ads of a single mother working three jobs who has a kid with cancer who is now not able to afford her health insurance premiums.

The cold political reality is that Republicans will eventually vote to keep these subsidies alive. They don't believe in the program. Remember, candidate Trump in 2016 ran on “repealing and replacing Obamacare.” They’ll vote for these subsidies because they don't want to be blamed for higher premiums, especially during a midterm election. Unfortunately, this will be a situation where the party of limited government will grow government in order to avoid a negative campaign commercial.

Through careful press leaks, Republicans are crafting what they’d call a responsible extension of these subsidies. A few of the options for reform are abortion related restrictions and association health plans. My former boss, former U.S. Senator Jim Talent, sponsored AHP legislation during his tenure in the Senate in the early 2000s.

The more urgent reforms are income caps, limited enrollment, and means testing. Under the Obamacare pandemic subsidies, the 400 percent income cap was entirely eliminated. That means a 60-year-old couple earning $200,000/year was eligible for the subsidy, and a single 45-year-old earning $120,000 was also eligible. Crazy!

These are all fine ideas, but the reality will be that Democrats will get an extension of pandemic-era welfare while Republicans will get the talking point of reforming the program. Ronald Reagan said back in 1986 that “The nearest thing to eternal life we will ever see on this earth is a government program.”

The politics surrounding this are tough, without a doubt. No one wants to see premiums rise for lower-income Americans. But if Republicans cannot defend free market principles and fiscal responsibility during a government shutdown, when will they?

Editor’s Note: The Schumer Shutdown is here. Rather than put the American people first, Chuck Schumer and the radical Democrats forced a government shutdown for healthcare for illegals. They own this.

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