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 Trump is trying to win the first major legislative battle of his
presidency. Pressure is growing on the businessman-turned politician
to deliver as investors become worried that a failed healthcare push
could also portend trouble for promised tax cuts and relaxed
regulation that have propelled the market to record highs in recent
months.
In one of the few visits he has made to the U.S. Capitol since
taking office two months ago, Trump told fellow Republicans in the
House of Representatives on Tuesday morning they would face
"political problems" for opposing the bill that takes apart
Obamacare and partially replaces it. Later in the day, Trump hosted
roughly a dozen lawmakers in the Oval Office to listen to their
concerns.
"The president was really clear: He laid it on the line for
everybody," House Speaker Paul Ryan, the leading proponent of the
bill, told reporters. "We made a promise. Now is our time to keep
that promise. ... If we don't keep our promise, it will be very hard
to manage this."
The S&P 500 and Dow Jones Industrial Average lost over 1 percent in
their worst one-day performances since before Trump's election
victory on Nov. 8. The S&P financial index sank 2.87 percent, its
biggest daily fall since June.
“You have this back and forth in Congress with the new healthcare
plan and you have this belief that if the healthcare plan can’t
pass, then they can’t move on to taxes. There’s this feeling that if
things don’t get done, then maybe what the market has been
anticipating gets held up," said Mark Kepner, managing director at
Themis Trading in Chatham, New Jersey.
Some conservative lawmakers believe the healthcare bill does not go
far enough, while moderate Republicans worry that millions of
Americans will be hurt by the dismantling of the 2010 Affordable
Care Act, Democratic former President Barack Obama's signature
healthcare legislation. (For a graphic on how U.S. healthcare stacks
up under the ACA and AHCA click http://tmsnrt.rs/2n0ZMKf)
Party leaders hope to move the bill to the House floor for debate as
early as Thursday. But the administration and House leadership can
afford to lose only about 20 Republican votes or risk the bill
failing since Democrats are united against it.
Republican Representative Mark Meadows, chairman of the conservative
House Freedom Caucus, said the roughly three dozen members have
decided not to vote as a bloc. As many as 21 currently plan to vote
no on the legislation, according to a CNN report.
Republican Representative Walter Jones said Trump told lawmakers in
the closed-door meeting at the Capitol that if the Republican bill
does not pass, they would face "political problems." Jones said he
thought Trump meant lawmakers could lose their seats.
ELECTORAL RISKS
Repealing and replacing Obamacare was one of Trump's main campaign
promises and has been a goal of Republicans since it was enacted.
While Trump predicted that Republicans could face challenges in
primary contests ahead of the 2018 midterm elections if they do not
gut Obamacare, there is also danger to them in doing so. If the
Republican bill is passed, millions of voters might lose their
healthcare coverage.
The Congressional Budget Office said last week that 14 million
people would forfeit coverage under the House bill over the next
year, although that number could change based on the most current
version of the legislation.
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Nancy Nielsen, associate dean for health policy at the University at
Buffalo's Jacobs School of Medicine, said Republican leaders were in
a tough spot.
"It is a not-so-delicate balancing act, as they have to win over the
most conservative House and Senate members without causing an
outrageous backlash from voters now or in the next election,"
Nielsen said.
Democrats oppose the Republicans' plan, saying it would hurt the
elderly, poor and working families while giving tax cuts to the
wealthy.
Republican leaders tweaked the bill this week to try to satisfy
critics, mainly from their own party.
Republican chairmen for two key committees said late Monday they
proposed more funding for tax credits, which conservatives have
opposed, that would give the Senate flexibility to help older people
afford health insurance. Additionally, Obamacare's taxes would be
eliminated in 2017 instead of 2018.
The amendments also addressed Medicaid, which is the country's
largest health insurance program and covers about 70 million people,
mostly the poor. The changes would allow states to implement work
requirements for certain adults, an idea championed by many
conservatives, and to decide how they receive federal funds.
Congressman Dan Donovan, who attended the Oval Office meeting on
Tuesday, said Trump did "more listening than directing." There was
some "political talk" but "no threats," he said.
Donovan, who has not announced whether he will support the bill,
cited people losing Medicaid and the defunding of women's healthcare
provider Planned Parenthood as concerns in his New York district.
The Club for Growth, an influential conservative lobby group, said
it would spend at least $500,000 for ads on television and digital
platforms urging Congress members to defeat the bill.
The Senate also will vote on the legislation, and more changes could
be made. Senate Majority Leader Mitch McConnell said that if the
House approved a healthcare bill, he would try to bring it to the
Senate floor next week.
(Additional reporting by Emily Stephenson, Jeff Mason, Doina Chiacu,
Susan Heavey, Richard Cowan and David Morgan; Writing by Alistair
Bell and Amanda Becker; Editing by Frances Kerry, Jonathan Oatis and
Lisa Shumaker)
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