Memo on Obamacare Repeal




To:       Interested Parties

From:  Club for Growth

Date:   April 4, 2017

Re:      Time for a Deal on Obamacare Repeal

The deal to repeal Obamacare that Vice President Pence is negotiating is a major step forward. It would finally include relief for American families from skyrocketing health insurance premiums in the Obamacare repeal bill. As we understand it, the deal would give states the opportunity to seek a ten-year (and possibly permanent) waiver of burdensome Obamacare insurance regulations. Studies show that these regulations have increased health insurance premium costs by 40% to 100%.

Allowing states the chance to opt out of them will:


  • Open the way for insurance companies to offer a greater menu of lower-cost options to consumers, fulfilling President Trump’s commitment to drive down health care costs.
  • Save taxpayers by letting states waive costly regulations.
  • Restore the principle of federalism to at least part of health care.

There is also a new proposal to reduce costs by expanding state high-risk pools.

If House leadership won’t accept this new improvement to their bill, they will miss a key opportunity to put Obamacare repeal back on track.

We think the Vice President’s effort is a good step forward, and, as long as the bill language fully reflects these new cost-saving reforms, the Club for Growth will support it.

As we said last week, Republicans – both conservatives and moderates – would have to be the ones to put together a good package for repealing and replacing Obamacare. It is important to note that, so far, conservatives have improved the bill significantly:


  • Scaling back Obamacare regulations – yet to be agreed to
  • Ending the individual and employer mandates
  • A quick repeal of Obamacare taxes that will save taxpayers almost $900 billion
  • Expanding Health Savings Accounts
  • Reducing the cost of Medicaid and, for the first time, allowing states to receive Medicaid funds in a block grant
  • Including a work requirement for Medicaid recipients

Taken together, these improvements are making the bill into a real repeal of Obamacare.

We’ve always known that all sides would not get everything they sought, and that the final bill would be less than perfect. But, by doing these real changes that lower premiums, reduce taxes, and improve Medicaid, Republicans in Congress can still repeal and replace Obamacare.