The mandates had required Americans to either get health insurance or pay a tax, an alternative that incentivized coverage for an estimated 13 million people.
The present bill has the support of 50 Republican senators and, based on a bipartisan deal, would pass concurrently with the Alexander-Murray Bill restoring insurers’ federal subsidy reimbursements, according to Sen. John Thune.
"Repealing the mandate pays for more tax cuts for working families and protects them from being fined by the IRS for not being able to afford insurance that Obamacare made unaffordable in the first place," Sen. Tom Cotton, architect of the bill, said Tuesday.
Senate Majority Whip John Cornyn added that the repeal will serve to aid “poor Americans” most affected by the tax penalty, and Sen. Rand Paul asserted the resulting allowance of $300 billion in tax cuts.
However, Democratic leaders were skeptical.
"They're cutting taxes on the wealthy and taking health care from millions and raising premiums on millions of others all to reduce taxes on the rich," Sen. Chuck Schumer of New York said. "Does that sound familiar? Well, it does to us. And that's why their health care bill failed. It's a back-door approach to get 'Trumpcare.’”
Direxion Daily S&P Biotech Bear 3X Shares (NYSE: LABD) traded down on the news, while Direxion Daily S&P Biotech Bull 3X Shares (NYSE: LABU), iShares NASDAQ Biotechnology Index (ETF) (NASDAQ: IBB) and SPDR S&P Biotech (ETF) (NYSE: XBI) spiked higher.
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