
Trump admin takes aim at Obamacare
Presented by the Coalition for Medicare Choices
With Ben Leonard
OBAMACARE IN THE CROSSHAIRS — The Trump administration released its first major health regulation Monday, proposing policies that would limit Obamacare enrollment, Chelsea and POLITICO's Robert King report.
The Centers for Medicare and Medicaid Services' proposed rule, which sets 2026 coverage year policies for the Affordable Care Act, would shorten the annual enrollment period for Obamacare from Nov. 1 to Dec. 15. The previous period stretched to Jan. 15.
The rule would also scrap a Biden-era regulation cleared last year that allowed recipients of the Deferred Action for Childhood Arrivals program — which lets young immigrants who were brought to the U.S. illegally when they were children remain in the country — to enroll in Obamacare. The agency proposes stripping this eligibility as part of President Donald Trump's executive order to end the 'taxpayer subsidization of open borders.'
Why it matters: The proposed rule illustrates how the Trump administration wants to tighten access to Obamacare's insurance exchanges after enrollment surged and reached record levels during former President Joe Biden's administration. It also builds on the Trump administration's decision to cut funding from nearly $100 million to $10 million for nonprofit 'navigators' that help people find insurance plans.
Also in the rule: The administration proposes other changes to Obamacare it says will crack down on improper enrollments, including ending a special monthly enrollment period for people in households earning less than 150 percent of the federal poverty level. The administration's goal is to end a policy that 'allows people to wait to enroll until they become sick instead of promoting continuous enrollment.'
It would also remove 'sex trait modifications,' or gender-affirming care, from a list of essential health benefits that Obamacare plans must cover.
Key context: Directors of state-run Obamacare exchanges have anticipated a rollback of coverage for DACA recipients for months, preparing to have to quickly reverse coverage that was just granted to the group and encouraging them to access health care while coverage is still available. About 500,000 DACA recipients became eligible for coverage under the Biden administration's expansion last year, though CMS estimated at the time that about 100,000 Dreamers would sign up for coverage.
What's next: The Trump administration must still take public comment before it can finalize the rule, a process that can take months.
WELCOME TO TUESDAY PULSE. It feels like spring in D.C., and we're not complaining. Send your tips, scoops and feedback to khooper@politico.com and ccirruzzo@politico.com, and follow along @Kelhoops and @ChelseaCirruzzo.
In Congress
GOP AGREES TO DOC PAY — House GOP leadership will resolve pay cuts for doctors treating Medicare patients in Republicans' party-line package supporting President Donald Trump's agenda, Ben reports.
In a social media post Monday, Rep. Greg Murphy (R-N.C.), who co-chairs the GOP Doctors Caucus, said that House Speaker Mike Johnson and Majority Leader Steve Scalise would include a fix to the payment cuts — mandated by a formula that lawmakers on both sides of the aisle say doesn't reflect rising costs.
Spokespeople for Johnson and Scalise didn't respond to requests for comment.
Background: Leadership had previously been open to including the provisions in a stopgap spending bill to keep the government funded after this week, but the pay fix was ultimately not included amid broader concerns among GOP leaders that adding more than standard program extensions would open the door to demands for other policies to be attached.
Key context: Supporters of the fix warn the stakes are high for not addressing this issue quickly: Decades of payment reductions in Medicare have put medical practices in difficult financial straits, potentially forcing them to close practices and reduce access to care, doctor groups say. But the price tag of a long-term fix has historically been a barrier to addressing the cuts.
FIRST IN PULSE: MEDICAID CAMPAIGN — Left-leaning advocacy group Protect Our Care is launching a $2 million ad buy targeting key House Republicans on preserving Medicaid, Ben reports.
The purchase, the largest in a $10 million campaign, consists of television, digital and radio ads featuring a 'lifelong' GOP voter and President Donald Trump supporter urging Republicans not to make cuts to Medicaid.
The push comes as Republicans are expected to target the program to help fund Trump's domestic agenda, including tax cuts, border enforcement and energy policy. Moderates have raised concerns about changes leading to cuts in benefits.
Among others, the ads will target several California, New York and Pennsylvania Republicans in swing districts, including Reps. Mike Lawler (R-N.Y.) and Young Kim (R-Calif.).
FREEDOM CAUCUS' PLEA — A group of ultraconservative lawmakers is pleading with moderate Republicans to not get in the way of making massive cuts to Medicaid, Ben reports.
Three prominent members of the House Freedom Caucus said in an op-ed for Fox News on Monday that they're not calling for massive cuts to the safety-net health insurance program but instead calling for reforms that would 'reverse its explosive expansion' that's left Medicaid 'unsustainable.'
Freedom Caucus Chair Andy Harris (R-Md.) and members Chip Roy (R-Texas) and Eric Burlison (R-Mo.) argued in the op-ed that while some colleagues may be 'hesitant' about making changes to Medicaid, many of those changes could be phased in to avoid cuts to benefits and help Republicans achieve necessary savings targets.
Background: Massive cuts to Medicaid would likely be needed to finance Republicans' party-line bill to enact broad swaths of President Donald Trump's domestic agenda. The budget resolution the House adopted last month would instruct the House Energy and Commerce Committee — which has jurisdiction over Medicaid — to find $880 billion in cuts over a decade.
The savings would help to finance the tax, border security and energy bill Republicans want to pass through the filibuster-skirting budget reconciliation process.
'For lawmakers who claim to be on board with cutting the waste, fraud and abuse — and delivering on Trump's historic mandate — this is it,' the Freedom Caucus members wrote. 'Nothing you do in the next two years will come close to the importance of implementing the $880 billion required in savings to programs under the House Energy and Commerce Committee's jurisdiction.'
IN THE STATES
TARGETING mRNA SHOTS — States are introducing more roadblocks to the use of messenger RNA vaccines, POLITICO's Lauren Gardner reports.
Republican policymakers across the country are proposing bills to limit or ban the use of the vaccines based on a mix of medical freedom rhetoric and incorrect assertions of how they work in the body. The proposals represent the latest manifestation of Covid-19 pandemic backlash.
Several bills introduced in the Texas Legislature would ban the administration, manufacture or sale of mRNA vaccines there. Legislation in Kentucky would prohibit the use of mRNA vaccines in children under 18. In Idaho, a GOP state senator has proposed a 10-year moratorium on mRNA vaccine administration.
Why it matters: Some efforts have failed, but public health experts worry that their existence now could be a bellwether for the future.
The efforts come as noted vaccine skeptic Robert F. Kennedy Jr. has taken the reins at HHS and the Trump administration is reportedly weighing whether to pull hundreds of millions of dollars in federal funding to Moderna, the maker of one of the most-used Covid shots, to develop a human bird flu vaccine as that disease spreads among animals and occasionally infects people.
'People laugh at this,' said Dr. Amesh Adalja of the Johns Hopkins Center for Health Security, 'but then five years from now more legislatures are doing it, and it becomes real.'
WHAT WE'RE READING
ProPublica's Annie Waldman and Lisa Song report on certain topics that will get extra scrutiny at the National Cancer Institute under the new HHS secretary.
POLITICO's Meredith Lee Hill reports on House GOP leaders' alarm over the Senate's delay in advancing their budget plan.
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Protests against immigration raids have been occurring nationwide this week, most notably in Los Angeles. Yahoo Finance Senior Columnist Rick Newman joins Market Domination Overtime with Josh Lipton and Julie Hyman to explain how the Trump administration's immigration policy is affecting the labor force and economy, and how companies like Home Depot (HD) have gotten caught in the crossfire. To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime here. Well, intensifying immigration raids this week have triggered protests across the country, particularly in cities like Los Angeles. That's where the National Guard was called in. And some companies like Home Depot are being caught in the crosshairs of President Trump's deportation efforts. For more, we want to bring in Yahoo Finance's Rick Newman, our political commentator, um, or, I should say crossroad, crossroads of politics and economy commentator. Sure. Call me anything, Julie. Okay. Um, I'll call you Rick. Um, so Rick, you know, we have seen, um, sort of a change in tack from the administration. Sort of the first wave, focusing on immigrants who were in the US illegally who had also committed other crimes, Right. to now doing more of a broad sweep of folks. They're going to Home Depot parking lots, right? Um, and they're, you know, this affects, as we've talked about with the economists before, certain workforces in particular. So what should we be watching? Yeah. I mean, that's the thing I'm thinking about is the parts of the labor force. Uh, migrant workers are a very important source, source of labor in construction. That's why this is happening at Home Depot, also in agriculture, retail, hospitality. Um, so what's happening now is Trump's immigration policy is now starting to touch the, uh, informal workforce and the informal economy, if you will. And I mean, there, there's a lot of reason to pay close attention to this because if you could just all at once take all the migrant workers out of the US economy, you would have a massive problem. I mean, this is a big source of workers. I mean, food would not get picked, um, projects would not get completed, homes would not get built. So it's starting. Um, I don't know what's going to happen, but if you look at why they're focusing on Home Depot, and of course, Home Depot, like almost any company, they want nothing to do with the controversy. They try hard, every company tries to stay as far away from this as they can, but um, a lot of contractors use Home Depot. Some of those contract workers shop at Home Depot for the stuff they need for projects. So, so the immigration authorities got the idea, let's go looking around at some Home Depots. And apparently, they are actually going into, um, some Home Depot outlets and places where they think they can, they can find some of these people. Um, there is actually a Reddit thread on, uh, you know, people who work at Home Depot saying, what do you do if you think ICE is coming into your location? This is not going to happen at every Home Depot across the country. And I think if the Trump administration were smart, maybe they would stop going into like retail establishments and find some other way to, you know, hit their numbers, but um, it's a problem. Yeah, and it's a problem, I think, like we can think about this from a business and economic perspective on, on a number of different fronts. I mean, the Wall Street Journal had a story looking at retailers, not just like a Home Depot, but food establishments that maybe are seeing a drop in traffic because people are afraid to shop in them because they're afraid a raid is going to come in. So you have that kind of effect on publicly traded companies potentially. You have the effect on unemployment numbers, which may not be the same. You, then maybe you have an effect on wages as well as we're seeing this situation play out. So there are a lot of potential repercussions. Right. Right. So, if I, I would guess that the strategy of the Trump administration, I mean, it has been reported that they want higher numbers. Um, so if you just went to farms and fields, um, where a lot of crops are picked, you would probably find tons of undocumented migrants. Do you want to do that? Um, do you want to, do you want to take everybody out of a, a field, I mean, it would be easy pickings, pardon the pun. Do you want to do that, though? But do remember, just aren't there some actual programs where people do come in seasonally legally, right? Yes, that's a, that's a different, yeah, that's a different thing. But we, we know that all of these things are happening. Right. Um, you could go to big construction sites and probably take half the workers off the job. Then what happens to the construction project? I mean, do you really want to do that? So I, what I detect is the Trump administration is dabbling with this idea of let's, let's interfere with business a little bit and see what happens. So if you're picking up five workers, you know, five-day laborers from a Home Depot parking lot, is that going to, um, show up in, you know, the GDP of Los Angeles? Probably not, um, but I'm trying to find contractors and I'm just starting to do a lot of this reporting, talk to them and see, is this affecting your business yet? Do you have a backup plan? Can you get workers from someplace else? This is not to defend, um, illegal immigration, but the fact is that these migrants are an important part of the labor force and you can't just take them all out of the labor force without any problems. All right, we'll keep watching. Thank you, Rick. Yeah. 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