Reports emerged yesterday that two senators have struck a deal that would result in the stabilization of health insurance markets in the United States. This was a bipartisan deal that would ensure that the critical subsidies to the insurers remain in place. This comes after the president signed an executive order to do away with the subsidies. However, the White House said that it supported the deal. The White House also made it clear that there would be another attempt to repeal and replace the Affordable Care Act. The deal was reached by Republican from Tennessee Alexander Lamar and Democrat from Washington Patty Murray. They agreed that the subsidies would be funded for at least two years. This solves the uncertainty that has surrounded the insurance market in America for some time. For starters, these subsidies are commonly referred to as the cost-sharing reduction payments. They are made to the insurance companies with the aim of lowering deductibles. The insurance companies have said on a number of occasions that without these subsidies, they were left with no choice rather than raising the premiums for people depending on the Affordable Care Act for insurance. This would also result in squeezed profits for these companies. They would eventually leave the market making the situation desperate for the people who survive on Obamacare.
Mr. Alexander spoke about the issue later. He said that the agreement would help avoid the chaos that had characterized the Obamacare. He further said that neither Democrats nor Republicans could benefit from chaos. However, the president backed the deal for the moment. In the past, he has referred to the Affordable Care Act as virtually dead. While addressing reporters at the Rose Garden, Mr. Trump said that the deal would help solve the current and immediate problem. However, what the senators know is that their negotiated deal is far from assured. Should their plan be implemented, it means that 2018 premiums are guaranteed and therefore, could not increase. President Trump promised his supporters and all Americans that they will find a good solution in the coming years. Other than providing the subsidies, Mr. Alexander said that state would have more flexibility in the number of choices that customers could receive. At the moment, Mr. Alexander also serves as Senate health committee chairman. This is a move that was hailed by Democratic leader Chuck Schumer who is the New York Senator. He said that the deal offered them an opportunity to work on other issues such as taxes.