Political strategist Dick Morris told Newsmax on Friday that Democrats continue defending Obamacare because the law directs taxpayer money to health insurance companies, a system he said was designed to benefit the industry and secure political contributions.
The presidential adviser appeared on "Rob Schmitt Tonight" and described the system as one that has long burdened families with rising premiums while protecting corporate interests.
During the interview, Schmitt asked Morris what Republicans should do as they confront what he called a failing healthcare law that has become expensive and dependent on subsidies.
In response, Morris said President Donald Trump shifted the debate during the recent government funding standoff by challenging the structure of Obamacare's payments.
"Well, I think that Trump pulled a trump card, if you will, in the government shutdown, because the Democrats got to the point where they said, we're fighting for Obamacare because these high premiums that are coming in, if we reopen the government, are going to be excessive and people won't be able to pay that.
"And what Trump did was he came back and he said, OK, let's reopen the government and give the money directly to the people who have the insurance and let them shop around and get the best deal they can, which obviously means not from the current insurance companies."
Morris argued, "The Democrats are just using Obamacare to try to get their insurance companies paid off.
"The program was originally developed largely so that it could subsidize insurance companies and line their pockets and. in return, get campaign contributions. And with the funds cut off, Trump called their bluff.
"He said, 'OK, I'll restart the funds, but I'll give it directly to the people as opposed to their insurance companies.' It was a brilliant move. It got the government reopened because the Democrats were terrified that this would actually happen.
"And now the Republicans are proceeding with this advantage to actually craft a plan. And Senator [Rick] Scott's plan is a great one, and it could be one of the most fundamental reforms in American history, really, to get rid of this albatross."
Scott has suggested shifting healthcare policy from corporate subsidies to individual choice, proposing that funds be allocated directly to Americans via accounts like Health Savings Accounts.
He has also been advocating for letting consumers buy insurance across state lines to boost competition and lower costs.
Morris believes these changes could separate Obamacare from insurance industry profits, which he says has caused Democrats to resist reform.
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Jim Thomas ✉
Jim Thomas is a writer based in Indiana. He holds a bachelor's degree in Political Science, a law degree from U.I.C. Law School, and has practiced law for more than 20 years.
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