Mr. President, let me begin by acknowledging the leadership that Chairman Alexander and Ranking Member Murray have offered and also by saying how much I have appreciated the hard work that Senator King from Maine has participated in, as…
Mr. President, let me begin by acknowledging the leadership that Chairman Alexander and Ranking Member Murray have offered and also by saying how much I have appreciated the hard work that Senator King from Maine has participated in, as well, in this process. They have worked together, side by side, to try to find some common ground while still retaining and protecting the principles they all hold with regard to how health insurance, long term, should be approached.
Coming to a bipartisan agreement on this very important piece of legislation
is only the first step. As you know, a deal was announced last month to give States permanent flexibility to avoid some of ObamaCare's most crushing mandates, while also temporarily authorizing the cost sharing reduction, or CSR, payments for 2 years. That is what the piece of legislation we are referring to in this particular case, the Alexander- Murray legislation, would do.
This agreement is a win for conservatives who have spent the past 7 years promising to relieve the American people of ObamaCare's skyrocketing premiums, limited choices, and Federal chokehold. For the first time since ObamaCare was forced onto the American public, the Alexander-Murray legislation is an opportunity to provide permanent, meaningful opportunities for States to opt out of some of ObamaCare's most egregious mandates under the 1332 waiver program, while making healthcare more affordable for their constituents.
As a former Governor, like my colleagues Mr. Alexander and Mr. King, I understand that the best decisions are made at the State and local levels, not by Federal bureaucrats. Empowering States with new opportunities to innovate and strengthen their individual health insurance markets in a way that meets their citizens' unique needs is a first step toward repealing ObamaCare and allowing the marketplace to once again be competitive and innovative.
In exchange for the permanent 1332 waiver changes, we have agreed to temporarily authorize the administration to make CSR payments for 2 years, similar to the provisions of the Better Care Reconciliation Act, which 49 Republican Members of the U.S. Senate supported earlier this year.
Recall that President Trump announced recently that he would stop the CSR payments after a Federal court found them to be illegal because they had not been appropriated by Congress. Not surprisingly, the previous administration had continued making these payments, a practice that President Trump rightfully and correctly stopped after months of warning that he would do so. We applaud the President for returning this appropriations decision to its constitutional place--with Congress.
We also recognize that there are millions of Americans who will face steep premium increases come January as a result of this challenging decision. This is in addition to the already skyrocketing premium increases that Americans are facing because of ObamaCare, because of the concept on which it was built. The American people did not ask for ObamaCare, and they shouldn't be unfairly punished.
By extending these payments for only 2 years, our legislation will stabilize the market and help provide a smooth transition as we continue to work on a full repeal and replacement. Providing a smooth transition away from ObamaCare has been included in every serious Republican healthcare plan to date. We have to have a transition in order to move away from the existing healthcare plans. In fact, I cannot think of a single GOP colleague who doesn't support a smooth transition so that we don't hurt families as we move away from our current, unworkable system.
It is also important to point out that Alexander-Murray is merely a step one in the total repeal and replacement of ObamaCare. Because of House and Senate rules, the 1332 waiver changes outlined in our bill are not eligible to be included in budget reconciliation legislation, which is the vehicle being used to repeal and replace ObamaCare by congressional Republicans and which we continue to work on. We need both bills. This is a two-step process.
We fully expect there to be an opportunity for us to finish the full repeal and replace of ObamaCare next year and are united in our desire to get it across the finish line. But 1332 waiver changes found in this bill require bipartisan support in the Senate, period. It requires 60 votes. That is not available to us or is not part of the remaining part of the challenge of the total repeal and replacement. We need both bills in order to get this done.
We have also included additional assurances within this bill to make certain our bill does not bail out insurance companies, as Senator Alexander stated earlier. CBO, or the Congressional Budget Office, confirmed this in the October report, noting that it benefits taxpayers and low-income policyholders, not insurance companies.
I also want to point out that there is also a fiscal case to be made for continuing the CSR payments in the short term. The nonpartisan Congressional Budget Office--once again, the CBO--found that the Federal Government will be on the hook to subsidize care of the individuals who otherwise would receive premium assistance via the CSR payments.
The CSR payments have ended. Insurers who stay in the individual marketplace will be forced to raise their prices to compensate. Instead of costing $7 billion, as it did this year under the use of CSRs, the CBO estimates that the disruption caused by abruptly ending the CSRs will cost the Federal Government an average of $25 billion annually, more than four times the current rate.
The fact that ObamaCare is failing is not a partisan issue. Members of both parties have acknowledged that it is rapidly sinking. Our colleagues on the other side of the aisle believe it is fixable. Republicans believe we have to go in a different direction. Democrats have refused to admit the failure. They recognize it is sinking--they think it is fixable--but, until now, have been unwilling to make any concessions to the law they were solely responsible for creating.
We must seize the opportunity to provide States with much needed relief from ObamaCare and show that States are far better at coming up with health insurance rules which are tailored to their individual needs. The only tradeoff is in fulfilling our promise to stabilize the individual market temporarily while we continue our work to repeal ObamaCare and replace it with a truly competitive market-based system. In the meantime, States will already be given that option under our plan.
Let me just share this. Sometimes when you look at a bipartisan piece of legislation, our colleagues on the other side of the aisle will point to the fact that they want to stabilize the market now. Republicans will point to the fact that we need to stabilize the market and provide the opportunity for the full repeal and replacement to become effective. ObamaCare started in 2009. It was passed in 2009. Yet it took until 2014 for all of the impacts to actually begin to accumulate--5 years. To undo it, it will take time for the States to create their fixes.
We have to pass the legislation, and the HHS has to create the rules. Then, at the local level, at the State level, the State legislatures have to create the laws once again that were torn apart by ObamaCare in the first place. Then their divisions of insurance and their departments of health have to actually create the rules. The insurance companies that are out there that want to compete once again have to be able to contract with doctors and hospitals. They have to go on out and not only write the contracts that will comply with the law and the regulations, but then they also have to go on out and market that product to individuals.
The exchange from one contract under ObamaCare to a contract with a competitor, which is when insurance carriers can actually offer different types of products to group plans or to individuals, will take time. That transition can hardly be done in less than 2 years, thus the need and the offer in all of the Republican proposals to take this 2- year time period and actually help the American people get through this very difficult time without hurting them more than the pain they will have already felt with the continuation of ObamaCare. It simply takes 2 years to make any reasonable transition happen.
Once again, I would like to acknowledge the hard work of the Senator from Tennessee, Mr. Alexander, and the way in which he has created a team effect, a team plan, on getting this through. I also acknowledge the hard work of Senator Murray and her working side by side with Senator Alexander in trying to find common ground so her colleagues see the importance, from their perspectives, while, at the same time, those of us on this side of the aisle reflect on the first step in a long- term goal of the repeal and replacement of ObamaCare.
For the first time, we have a chance. For the first time, we have an opportunity to take a step statutorily, with
a 60-count vote, in actually making changes to the substance of ObamaCare. It is high time. It is time to get started. It is time to move forward.
I thank all of our colleagues for working side by side in at least slowing down the damage which has been occurring and which will continue to occur until we get the full replacement of ObamaCare behind us.
I yield the floor.