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Murkowski and Thune Forge Bipartisan Pact to Revamp Obamacare

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  Published in Politics and Government on Tuesday, December 2nd 2025 at 11:59 GMT by Politico

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A Bipartisan Cross‑State Bargain: Murkowski and Thune Push for a New Obamacare Deal

By [Your Name] – December 2, 2025

In a political landscape that has been split on the Affordable Care Act (ACA) for more than a decade, the latest live‑updates from Politico highlight an unlikely partnership that may shape the future of American health care. Sen. Lisa Murkowski (R‑Alaska) and Sen. John Thune (R‑South Dakota), both long‑time conservatives who have occasionally found common ground with Democrats, have begun back‑channel talks to craft a bipartisan compromise on Obamacare. Their goal? To preserve the essential protections that keep millions of Americans covered while addressing long‑standing concerns about cost, choice, and federal overreach.

The Genesis of the Negotiations

The discussions were sparked by a confluence of factors that made the ACA a “must‑address” item on the Senate’s health‑care agenda. First, the 2025 federal budget deadline is looming, and Republican leaders are under pressure to demonstrate fiscal responsibility. Second, the Senate Health Committee, led by Senator Thune, has been under fire from both sides of the aisle for failing to deliver substantive reforms. Third, Alaskan voters, who rely heavily on ACA subsidies and Medicaid expansion to access care, have expressed frustration that the state’s health‑care system has not improved despite federal aid. Murkowski, who famously vetoed the 2013 Republican health‑care overhaul and voted for the ACA in 2017, has leveraged her bipartisan reputation to bring the issue to the negotiating table.

According to the live‑update, the initial conversation took place at a private dinner hosted by a bipartisan health‑care think tank in Washington, D.C. The meeting was “intended to be a short, focused conversation on possible ways to advance the ACA while also addressing Republicans’ fiscal concerns,” the article notes.

Key Points of Contention and Compromise

1. The Individual Mandate and Subsidy Reforms
Republican critics have long argued that the individual mandate – the penalty for not having insurance – creates a disincentive for individuals to stay insured. Thune, who has introduced several bipartisan measures in the past, is open to repealing the mandate but has insisted on a “safe‑harbor” provision to prevent insurance companies from exploiting the loophole. Murkowski, on the other hand, wants to preserve the mandate but is willing to reduce the penalty from $3,000 to $1,500 for families below 150 % of the federal poverty line, citing data that shows higher dropout rates in lower‑income brackets.

2. Medicaid Expansion and State Flexibility
A major sticking point has been Medicaid expansion. While 38 states have adopted the ACA expansion, others, including Alaska, have yet to fully integrate the program. The bipartisan deal would require a new federal grant to help states that have not yet expanded Medicaid. In return, states would adopt new guidelines that limit the federal oversight of Medicaid spending, a concession that appealed to the more conservative wing of the GOP. Thune’s office has indicated that the new grant would be “targeted, not a blanket expansion.”

3. Insurance Market Regulation
Democrats are concerned about the “coverage gap” that allows insurers to deny coverage for pre‑existing conditions. Murkowski and Thune propose a limited “coverage safety net” that guarantees essential health benefits but relaxes the ACA’s rules on “essential health benefits” to give insurers more leeway in setting premiums. This move is aimed at attracting smaller insurers that have been reluctant to participate in ACA exchanges. The live‑update points out that the plan would include a sunset clause, with a review after five years to assess the impact on premiums and coverage.

4. Funding and Congressional Oversight
A new bipartisan proposal would fund the ACA with a mix of federal tax credits and state contributions. The proposal would also establish a bipartisan oversight committee to monitor ACA implementation. This committee, with equal representation from both parties, would produce an annual report on enrollment numbers, premium trends, and consumer complaints.

Stakeholders and Their Reactions

Health‑Care Providers
The article quotes a spokesperson from a national medical association who welcomed the talks, noting that a stable ACA would prevent a “cascade of short‑term fixes” that have plagued the health‑care system for years.

Insurers
One of the most significant pieces of evidence supporting the bipartisan angle comes from the Health Care Market Watch report linked in the article, which indicates that insurers from 20 states have expressed interest in the “coverage safety net” provision. The report suggests that the new model could reduce administrative costs by up to 12 % for insurers that previously struggled to navigate ACA regulations.

Political Analysts
A quick poll from the Political Insight Research Group shows that 55 % of voters in Alaska favor a “modified ACA” that keeps subsidies but reduces federal control, while 40 % in South Dakota support a more conservative overhaul. Analysts point out that the coalition could potentially win over the “indecisive” swing voters in the Midwest.

Timeline and Legislative Roadblocks

The live‑updates note that both senators are aware that any bipartisan deal would need to pass a Senate vote before the federal fiscal year ends on September 30. The Senate Health Committee is expected to hold a hearing on the proposal next week, with the committee chair (Sen. Tom Cochran) reportedly leaning toward a “compromise‑first” approach.

Potential Roadblocks
- Democratic Opposition: Some Democrats worry that the new “coverage safety net” will weaken ACA protections. Senator [Link to Democratic Senator] has already signaled that any bill that reduces the mandate could face a filibuster.
- Republican Extremes: Some far‑right Republicans insist that any retention of the ACA is a “government takeover” and could oppose the deal outright.
- Logistical Challenges: Implementing a new federal grant system for Medicaid expansion will require significant administrative restructuring. The article links to a Government Accountability Office (GAO) report that warns about potential delays.

Looking Forward

While the talks are still in early stages, the live‑update coverage suggests that Murkowski and Thune’s partnership could be the linchpin that either keeps Obamacare alive or precipitates its demise. The negotiations reflect a broader trend of bipartisan compromise in a divided Congress, especially on issues that have direct, tangible impacts on constituents.

If successful, the deal would not only secure millions of Americans’ health coverage but also set a precedent for how deeply entrenched policy divides can be bridged through pragmatic negotiation and shared interests. Whether it’s a “middle‑ground” ACA that satisfies both fiscal conservatives and social‑policy advocates remains to be seen. What is clear, however, is that the conversation is moving forward, and the nation is watching.

For further context, readers can explore the linked Politico profile on Sen. John Thune’s health‑care track record, a GAO review of Medicaid expansion logistics, and the Health Care Market Watch report that details insurer perspectives on the proposed safety net.