US Senator McCain opposes Obamacare repeal bill, a possible fatal blow

Sen. John McCain. (AP)
Updated 23 September 2017
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US Senator McCain opposes Obamacare repeal bill, a possible fatal blow

WASHINGTON: US Senator John McCain said on Friday he opposes the latest Republican bill to dismantle Obamacare, dealing the measure what could be a fatal blow given the party’s slim Senate majority.
With several other Republicans still undecided on the measure, Senate Majority Leader Mitch McConnell said earlier this week he intended to bring it to the Senate floor for a vote next week, though he did not promise to do so.
A vote would set the stage for another dramatic Capitol Hill decision on the 2010 law that brought health insurance to millions of Americans and became former Democratic President Barack Obama’s signature domestic achievement.
For seven years, Republicans have hammered Obamacare as an unwarranted government intrusion into American health care. President Donald Trump made repealing Obamacare one of his top campaign promises in 2016. Democrats have fiercely defended it.
The announcement by McCain, a Republican who has often been at odds with Trump and who cast a crucial “no” vote in July that helped defeat an earlier Republican repeal bill, had the potential to up-end McConnell’s plans. McConnell’s office did not immediately respond to requests for comment.
“This is not going to be easy,” Vice President Mike Pence said in a speech in Indiana after McCain’s announcement, as he made it clear that Republicans should keep their campaign promise to repeal and replace Obamacare.
“President Trump and I are undeterred.” Pence added.
Republicans have only a narrow Senate majority and cannot afford to lose many votes on the bill. They are also on a tight timetable.
McConnell has been trying to schedule a vote on the bill by Sept. 30, the last day on which the bill could pass with only a simple majority of 51 votes in the Senate. A vote taken any later than that would have to garner at least 60 votes for passage.
Weeks after the humiliating defeat in July, when the Obamacare repeal fight seemed to be over, the current bill was introduced by Republican Senators Bill Cassidy and Lindsey Graham, a close friend of McCain’s, and seemed to gain momentum.

MCCAIN SAYS DETAILS ON IMPACT NEEDED
But McCain on Friday laid out his opposition in a statement: “I cannot in good conscience vote for the Graham-Cassidy proposal.” He said he took no pleasure in announcing his opposition and noted that the bill’s authors “are my dear friends.”
McCain complained about the rushed process Republicans used to push the bill forward. He said he would consider supporting a bill like it if it had emerged from extensive hearings, debate and amendment. “But that has not been the case,” he said.
McCain, who cast his “no” vote in July just days after being diagnosed with an aggressive brain cancer, said he could not support the bill without knowing how much it would cost, how it would affect insurance premiums and “how many people will be helped or hurt by it,” information that will not be available until the non-partisan Congressional Budget Office provides a full assessment at the end of September.
The Graham-Cassidy bill would take federal money spent on the Medicaid program for the poor and disabled, as well as subsidies to help Americans buy private insurance, and divvy it up to the states in block grants. Advocates say that would give states more discretion to manage their own health care schemes.
Although the CBO has not yet fully assessed the bill’s effects, independent analyzes indicate it would fundamentally redistribute federal health care money, generally with Republican-leaning states benefiting and Democratic-leaning states losing, largely because a majority of the states that opted to expand Medicaid under Obamacare were Democratic-leaning.
An Washington Post-ABC News opinion poll said Americans prefer Obamacare to the Graham-Cassidy alternative by 56 percent to 33 percent.
Graham said in a statement he was not giving up. “We press on,” he said.
Shares of US insurers gained after news that McCain would not support the bill. Insurers had fallen over the past week as investors worried about spending cuts.
Centene Corp. gained 1.6 percent to $92.22 while Molina Healthcare rose 4.5 percent to $65.32. Both specialize in government-funded health care.

WINNERS AND LOSERS AMONG STATES
State-by-state impacts from Graham-Cassidy would vary, the Axios news website reported on Friday, citing a study by the Centers for Medicare and Medicaid Services (CMS), the unit of the Department of Health and Human Services that oversees Medicaid and the Obamacare program.
The CMS study found that by 2026, Alaska would lose 38 percent of its federal funding for insurance subsidies and Medicaid; Arizona would lose 9 percent; Maine would gain 44 percent; Ohio would lose 18 percent; and West Virginia would lose 23 percent, Axios reported.
These states are home to senators who are under pressure on health care. Both of Alaska’s Republican senators, Lisa Murkowski and Dan Sullivan, are still on the fence over Graham-Cassidy.
The CMS had no immediate comment on the Axios report.
Besides McCain, Kentucky’s Rand Paul is the only other Republican senator who has publicly said he opposes the bill.
Maine’s Susan Collins said she was leaning against the bill, the Portland Press-Herald newspaper reported on Friday. Kansas’ Jerry Moran is also undecided.
No Democrats support the bill.
To pass Graham-Cassidy, the Republicans need at least 50 votes in the 100-seat Senate, which they control 52-48, with Pence casting a potential tie-breaking vote.
The insurance industry, hospitals, medical advocacy groups such as the American Medical Association, American Heart Association and American Cancer Society, the AARP advocacy group for the elderly and consumer activists oppose the bill.
The Center on Budget and Policy Priorities, a liberal think tank in Washington, estimated the bill would cause more than 30 million people to lose insurance.


Is the United States after Venezuela’s oil?

Updated 6 sec ago
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Is the United States after Venezuela’s oil?

  • Companies from the US have pumped Venezuelan crude from the first discoveries there in the 1920s
  • Venezuela exports about 500,000 barrels per day on the black market, mainly to China and other Asian countries

CARACAS: As US forces deployed in the Caribbean have zoned in on tankers transporting sanctioned Venezuelan oil, questions have deepened about the real motivation for Donald Trump’s pressure campaign on Caracas.
Is the military show of force really about drug trafficking, as Washington claims? Does it seek regime change, as Caracas fears? Could it be about oil, of which Venezuela has more proven reserves than any other country in the world?
“I don’t know if the interest is only in Venezuela’s oil,” Brazil’s leftist President Luiz Inacio Lula da Silva, who has offered to mediate in the escalating quarrel, said last week.
The US president himself has accused Venezuela of taking “all of our oil” and said: “we want it back.”
What we know:

- Oil ties -

Companies from the United States, now the world’s leading oil producer, have pumped Venezuelan crude from the first discoveries there in the 1920s.
Many US refineries were designed, and are still geared, specifically for processing the kind of heavy crude Venezuela has in spades.
Until 2005, Venezuela was one of the main providers of oil to the United States, with some monthly totals reaching up to 60 million barrels.
Things changed dramatically after socialist leader Hugo Chavez took steps in 2007 to further nationalize the industry, seizing assets belonging to US firms.

- And now? -

Down from a peak of more than three million barrels per day (bpd) in the early 2000s, Venezuela today produces about a million barrels per day — roughly two percent of the global total.
US firm Chevron extracts about 10 percent of the total under a special license.
Chevron is the only company authorized to ship Venezuelan oil to the United States — an estimated 200,000 barrels per day, according to a Venezuelan oil sector source.
The South American country’s domestic industry has declined sharply due to corruption, under-investment and US sanctions in place since 2019.
Analysts say the high investment required to rebuild Venezuela’s crumbling oil rigs would be unappetizing for US firms, given the steady global supply and low prices.
According to Carlos Mendoza Potella, a Venezuelan professor of petroleum economics, Washington’s actions were likely “not just about oil” but rather about the United States “claiming the Americas for itself.”
“It’s about the division of the world” between the United States and its rivals, Russia and China,” he added.
Venezuela exports about 500,000 barrels per day on the black market, mainly to China and other Asian countries, according to Juan Szabo, a former vice president of state oil company PDVSA.

- Blockade -

Trump on December 16 announced a blockade of sanctioned oil vessels sailing to and from Venezuela.
Days earlier, US forces seized the M/T Skipper, a so-called “ghost” tanker transporting over a million barrels of Venezuelan oil, reportedly destined for Cuba.
Washington has said it intends to keep the oil, valued at between $50 and $100 million.
Over the weekend, the US Coast Guard seized the Centuries, identified by monitoring site TankerTrackers.com as a Chinese-owned and Panama-flagged tanker.
An AFP review did not find the Centuries on the US Treasury Department’s sanctions list, but the White House said it “contained sanctioned PDVSA oil” — some 1.8 million barrels of it.
On Sunday, officials said the Coast Guard was pursuing a third tanker, identified by news outlets as the Bella 1 — under US sanctions because of alleged ties to Iran.
The PDVSA insists its exports remain unaffected by the blockade.
This was critical, according to Szabo, as the company only has capacity to store oil for several days if exports stop.

- Impact -

Whatever Trump’s goal with Venezuelan oil, the blockade, if it continues, is likely to scare off shipping companies and push up freight rates.
Szabo expects Venezuela’s oil exports will fall by nearly half in the coming months, slashing critical foreign currency income from Venezuela’s black market sales.
This would asphyxiate the already struggling economy of Venezuela, piling more pressure on Nicolas Maduro.
The Trump administration has tip-toed around explicitly demanding for Maduro to leave.
While Trump has said he does not anticipate “war” with Venezuela, he did say Maduro’s days “are numbered.”
US Homeland Security Secretary Kristi Noem told Fox News on Monday that the oil tanker seizures send “a message around the world that the illegal activity that Maduro’s participating in cannot stand, he needs to be gone.”