WASHINGTON - After a rank-and-file rebellion, House GOP leaders agreed Wednesday to move a spending resolution that would defund the Affordable Care Act -- setting off a confrontation with the White House and Senate Democrats that could lead to a government shutdown. "We aim to put a stop to "Obama care" before it costs one more job or raises...
WASHINGTON - After a rank-and-file rebellion, House GOP leaders agreed Wednesday to move a spending resolution that would defund the Affordable Care Act -- setting off a confrontation with the White House and Senate Democrats that could lead to a government shutdown.
"We aim to put a stop to "Obama care" before it costs one more job or raises a family's out-of-pocket expenses one more dollar," said House Majority Leader Eric Cantor, R-Va., "And that fight will continue as we negotiate the debt limit with the president and the Senate."
House Speaker John Boehner had argued that House Republicans couldn't stop the Affordable Care Act because the Senate and president wouldn't go along. On Wednesday, he signed on to the fight after conservatives in his GOP caucus said they wouldn't vote for any spending bill that didn't defund ObamaCare.
"We listened to our colleagues over the course of the last week," Boehner said. "We have a plan that they're happy with. We're going forward."
Democrats labeled the GOP spending plan irresponsible.
"This is fantasy politics with real world consequences," said Rep. Peter Welch, D-Vt. "I mean, the Affordable Care Act was passed by Congress. It was upheld by the Supreme Court. It was a major issue in the presidential campaign. The guy against it lost. The guy for it won."
President Barack Obama said Republicans were endangering the U.S. economy and threatening government services relied by millions of Americans.
Meanwhile, Conservative House Republicans, led by Rep. Steve Scalise, R-Jefferson, Wednesday unveiled their alternative to "ObamaCare," a plan that would provide generous tax breaks to people who purchase health insurance coverage and more government funding for state high-risk pools.
"Many people don't have real options now and feel trapped in their jobs for fear of losing their health coverage," said Scalise, the RSC's chairman. "In our bill, we don't only increase competition by allowing people to purchase across states lines, but we allow groups to pool together through associations to purchase health care. So, you can join together with members of your Rotary Club and get group coverage."
Scalise said the RSC proposal "gets rid of the mandates and the government interference" from the Affordable Care Act, while expanding insurance options for all Americans.
The plan would grant individuals who purchase health care a deduction of $7,500 against their income. Families could qualify for a $20,000 tax deduction. The deductions can be claimed regardless of the cost of the insurance.
Among other provisions: Protection for Americans with pre-existing conditions who already have insurance. They'd generally be able to switch their insurance without problem. Another measure authorizes expansion of health savings accounts with tax benefits that Americans can use to pay medical costs which they say is particularly helpful to those on high risk plans.
The GOP plan would authorize $25 billion over the next 10 years to boost state high-risk insurance programs, where rates would be capped at no more than twice the state's average insurance rates.
The RSC measure will provide some political cover for Republicans who have been criticized for moving aggressively to repeal the Affordable Care Act, without offering an alternative.
But the plan is still likely to meet opposition from Democrats because, unlike the subsidies provided under the Affordable Care Act to help low and middle income Americans purchase health coverage, the RSC proposal provides tax breaks to help people buy insurance, regardless of income restrictions. Scalise said that by tying the plan's tax breaks to the cost of insurance the RSC is encouraging "people to shop around," and choose their coverage more carefully because they get "more money in their pockets" by doing so. It also gives individuals and families access to tax breaks that, previously, went only to businesses that provide health insurance subsidies for workers, according to backers of the RSC plan.
While the Affordable Care Act bars discrimination against people with pre-existing conditions, and makes that palatable to insurance companies by requiring most Americans (including younger, healthier people) to get coverage, the GOP plan appears to rely more on expanded funding to state high-risk pools where insurance costs would be capped at no more than twice the state's average premiums.