Republicans divided over whether to salvage Obamacare — or replace it — ahead of subsidy deadline

Republicans across the board harbor deep frustrations with the rising costs of the Affordable Care Act, better known as Obamacare. But while some lawmakers believe it’s time to scrap the system, others fear a wholesale change may do more harm than good. 

Rep. Harriet Hageman, R-Wyo., said she struggles to imagine what that change would have to look like.

“I don’t know that you can completely remove it,” Hageman said. “We have to have stability and certainty in the market.” 

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Rep. Mike Kennedy, R-Utah, agrees with Hageman.

“It’s not going away anytime soon. I think there are some parts of the Obamacare policies that are positive,” Kennedy said. “I don’t think people want to see [it] go away. But there are ways to reform this, and it’s not just sending more money to insurance companies.”

On the other hand, lawmakers like Rep. Randy Fine, R-Fla., had a quick answer ready for whether Republicans should consider finding an alternative.

“Well, yeah! Obamacare is a failure,” Fine said. “That much is very clear.” 

“Borrowing money from your kids and grandkids to hide what something actually costs doesn’t lower costs. That’s just lying about what they are. I don’t think we have a choice because if we stay on the Obamacare path, we will bankrupt the country.” 

Amid other healthcare-related questions, the GOP’s divisions over Obamacare come as Republicans consider whether to extend COVID-era emergency Obamacare subsidies or let the assistance expire at the end of the month.

Republicans concerned about the country’s fiscal picture hope the elimination of the federal assistance will help bring the country closer to its pre-COVID spending levels. Democrats, by contrast, worry that letting the subsidies expire could leave 90% of the 24 million Obamacare enrollees with higher premiums overnight.

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According to the Committee on a Responsible Federal Budget, a nonpartisan fiscal policy think tank, continuing the subsidies could cost upwards of $30 billion a year.

As a part of those conversations, Republicans have explored how they can reform Obamacare to make it more affordable. To Rep. Eric Burlison, R-Mo., the change can’t be marginal.

“I would say we can’t be tinkering around the edges here. Like if we tinker, we’re really not gonna fix this problem,” Burlison said.

In some ways, Burlison believes replacing Obamacare shouldn’t be the focus of the GOP. By creating a better alternative, he believes Republicans can encourage policyholders to walk away from Obamacare voluntarily.

“I think we need to do a new option and introduce that. And honestly, I think that this option will be so great no one will want to be in Obamacare anymore,” Burlison said.

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Other Republicans would like to explore more substantive reforms — perhaps even scrap the program — but are skeptical of large-scale change in the face of current political realities.

“The question is, can you pass it? Sixty votes in the Senate. Not gonna happen. That’s just not realistic. So, let’s talk about things we can pass,” Rep. Rich McCormick, R-Ga., said when asked about whether Republicans should be looking for an alternative.

To advance most legislation, Senate Republicans need 60 votes. They hold just 53 seats in the chamber.

Instead, McCormick believes Republicans can make changes that make the healthcare space more competitive to drive down costs — even if Obamacare remains in place. 

“The reason that you have a competitive market in non-insured products such as LASIK eye surgery, which now is about the same as it was 40 years ago, 50 years ago. Why? Because it’s competitive. Even despite all the inflationary costs to everything else, it didn’t increase. Because we have better competition, because it’s not paid for by insurance,” McCormick said. 

“When insurance gets involved, when government gets involved, it becomes more expensive by design,” McCormick said.