US Senate takes first step towards repealing Obamacare

Members pass resolution on dismantling Barack Obama’s health programme

A woman holds an Obamacare sign in front of a medical centre in Miami, Florida. Photograph: Rhona Wise/AFP/Getty Images
A woman holds an Obamacare sign in front of a medical centre in Miami, Florida. Photograph: Rhona Wise/AFP/Getty Images

The US Senate on Thursday took the first concrete step toward dismantling Obamacare, voting to instruct key committees to draft legislation repealing president Barack Obama’s signature health insurance programme.

The resolution, passed in the early hours of Thursday in a 51-48 vote, now goes to the House of Representatives, which is expected to vote on it this week.

Scrapping Obamacare is a top priority for Republican president-elect Donald Trump and the Republican majorities in both chambers.

Republicans have said the process of repealing Obamacare could take months, while developing a replacement plan could take longer.

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But they are under pressure from Mr Trump to act fast, after he said on Wednesday that the repeal and replacement should happen “essentially simultaneously”.

Some 20 million previously uninsured Americans gained health coverage through Mr Obama’s Affordable Care Act (ACA), which has become known as Obamacare.

Coverage was extended by expanding Medicaid and through online exchanges where consumers can receive income-based subsidies.

Republicans have launched repeated legal and legislative efforts to unravel the law, criticising it as a government overreach.

They say they want to replace it by giving states, not the federal government, more control in this regard.

However, in recent days some Republicans have expressed concern about the party’s current strategy of voting for a repeal without having a consensus replacement plan ready.

Republican House Speaker Paul Ryan said this week he wants to pack as many replacement provisions as possible into the legislation repealing Obamacare.

Senate finance committee chairman Orrin Hatch, a Republican, said that could be difficult under Senate rules.

The resolution approved on Thursday instructs committees of the House and Senate to draft repeal legislation by January 27th.

Both chambers will then need to approve the resulting legislation before any repeal goes into effect.

Senate Republicans are using special budget procedures that allow them to repeal Obamacare by a simple majority, so that they will not need Democratic votes. Republicans have 52 votes in the 100-seat Senate.

One Republican, Senator Rand Paul, voted no to the resolution on Thursday.

Democrats have mocked the Republican effort, saying Republicans have never united around an alternative to Obamacare.

“They want to kill ACA but they have no idea how they are going to bring forth a substitute proposal,” said Senator Bernie Sanders of Vermont, an independent who caucuses with the Democrats.

Replacement plan

On Wednesday, Mr Trump said he would submit a replacement plan as soon as his nominee to lead the health and human services department, Tom Price, is approved by the Senate. Mr Trump gave no details on the plan.

Trump senior adviser Kellyanne Conway praised politicans for clearing the way for a repeal and said the replacement effort will likely tackle medication costs.

“To repeal and replace Obamacare and not have a conversation about drug pricing seems not like a very reasonable prospect and not [a] responsible prospect,” Ms Conway told Bloomberg Television on Thursday, one day after Mr Trump targeted the pharmaceutical industry, a traditional Republican ally, during a press conference.

Democrats passed the Affordable Care Act in 2010 over united Republican opposition.

Democrats said the act is helping to slow the growth in healthcare spending.

However,Republicans say the system is not working. The average Obamacare premium is set to rise 25 per cent in 2017.

Reuters