New GOP bill would halt Obamacare individual mandate, restore subsidy payments
Rep. Kevin Brady, R-Texas, and Sen. Orrin Hatch, R-Utah, on Thursday introduced bills that would temporarily suspend the individual mandate under Obamacare, and fund the cost-sharing reduction payments President Trump said he would nix through 2019.
CBS News first obtained the text of Brady's bill. (Here is the text of the bill as of 7:47 a.m. Wednesday.) Brady is the chairman of the House Ways and Means Committee, and Hatch is the chairman of the Senate Finance Committee.
The Healthcare Market Certainty and Mandate Relief Act of 2017 places a moratorium on the individual mandate requiring Americans to have insurance from after December 31, 2016 until January 1, 2022, and retroactively nullifies the employer mandate from December 31, 2014, until Jan. 1, 2018.
The legislation also directs the federal government to fund cost-sharing reduction payments for the next two years. Last month, Mr. Trump abruptly announced he would end the cost-sharing reduction payments, which are payments the federal government makes to insurers under Obamacare to keep health costs low for low-to-middle-income families. The legislation, however, prohibits such payments to be given to an issuer of a health plan that includes abortion coverage.
The legislation also increases the maximum contribution limit for health savings accounts.
"This legislation lays out an immediate rescue plan for the millions of Americans still trapped in Obamacare," Brady said in a statement. "This important legislation takes action to help provide certainty in the marketplaces in the near term, by legally and temporarily funding CSRs, while also proposing solutions supported by the House and the Senate that will expand access and allow more workers, families, and small businesses to choose health care that is right for them – not what Washington says is best. We continue to explore new ways to provide certainty, stability, and relief from Obamacare's failures – rising premiums, fewer choices, limited access – as we work towards a patient-centered health care system."
Hatch said the legislation would temporarily relieve Americans from the most burdensome parts of Obamacare.
"This initiative is designed to add to the debate on how we can best address – in the near term – the current challenges plaguing the American healthcare system," Hatch said in a statement. "Recent proposals to address the individual markets do not have the support needed to clear both chambers of Congress and become law. Our legislation provides temporary relief for Americans while starting to undo the most harmful aspects of Obamacare – a priority for many members. As we work toward finding an effective solution, our bicameral approach should be considered in ongoing discussions about how to come together to replace our nation's flawed health law."
The legislation is the latest Republican effort to address Obamacare. Brady and Hatch announced last week that they would be introducing such a plan.
The legislation competes with a bill from Sen. Lamar Alexander, R-Tennessee, and Sen. Patty Murray, D-Washington. The Alexander-Murray bill would also fund the subsidy payments for two years, but it also includes an approach to waivers for states from some of the requirements of the Affordable Care Act. Brady's office declined to comment on any legislation until it is public.
The text comes ahead of the GOP's intention to reveal its tax plan on Thursday.
In the past, Brady has said Republicans should continue the payments while Congress grapples with a broader plan to repeal and replace Obamacare.
"We should act within our constitutional authority now to temporarily and legally fund cost-sharing reduction payments as we move away from Obamacare and toward a patient-centered system that truly works for the American people," Brady said at a June hearing on Mr. Trump's budget request for Health and Human Services.
CBS News' Stefan Becket and Catherine Reynolds contributed to this report.
This is a developing story and will be updated.