Senate Republicans Walk Tight Rope With New Healthcare Bill

WASHINGTON, July 13 (Reuters) - Senate Republican leaders, aiming to salvage efforts backed by President Donald Trump to dismantle the Obamacare law, unveiled on Thursday revised legislation that lets insurers sell cheap, bare-bones healthcare policies and retains key taxes on the wealthy.

U.S. Senate Majority Leader Mitch McConnell, known as a skillful tactician, released the reworked legislation in a bid to unite disparate Republican factions and make good on his party's seven-year mission to gut Democratic former President Barack Obama's signature legislative achievement.

McConnell was walking a tightrope with Democrats united against the bill. He cannot afford to lose more than two Republican senators to win passage. Two - moderate Susan Collins and conservative Rand Paul - said they would oppose even bringing the revised bill up for debate, and others expressed reservations.

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U.S. Senator Tom Cotton (R-AR) (L) and Senator David Perdue (R-GA) (R) unveil legislation aimed at curbing legal immigration by halving the number of legal immigrants admitted into the United States, at the U.S. Capitol in Washington, U.S. February 7, 2017. REUTERS/Jonathan Ernst U.S. Senator Cory Gardner (R-CO) smiles after he was ceremonially sworn-in by Vice President Joseph Biden in the Old Senate Chamber on Capitol Hill in Washington January 6, 2015. REUTERS/Larry Downing (UNITED STATES - Tags: POLITICS HEADSHOT) U.S. Senate Majority Leader Mitch McConnell (R-KY) speaks during a media briefing on Capitol Hill in Washington, U.S. April 25, 2017. REUTERS/Joshua Roberts U.S. Senator Rob Portman (R-OH) speaks during a session called "The New Congress" at the Wall Street Journal's CEO Council meeting in Washington December 2, 2014. REUTERS/Kevin Lamarque/File Photo U.S. Senator Pat Toomey (R-PA) speaks to the 38th annual Conservative Political Action Conference meeting in Washington DC, U.S. February 10, 2011. REUTERS/Larry Downing/File Photo U.S. Senator John Thune addresses the media during the 2017 "Congress of Tomorrow" Joint Republican Issues Conference in Philadelphia, Pennsylvania, U.S. January 25, 2017. REUTERS/Mark Makela U.S. Senator John Cornyn (R-TX)questions Supreme Court nominee judge Neil Gorsuch during a Senate Judiciary Committee confirmation hearing on Capitol Hill in Washington March 21, 2017. REUTERS/Joshua Roberts Senator Ted Cruz (R-TX) questions Supreme Court nominee judge Neil Gorsuch during his Senate Judiciary Committee confirmation hearing on Capitol Hill in Washington March 21, 2017. REUTERS/Joshua Roberts Chairman of the Senate Health, Education, Labor and Pensions Committee Lamar Alexander speaks during Rep. Tom Price's (R-GA) nomination hearing to be Health and Human Services secretary in Washington, U.S., January 18, 2017. REUTERS/Joshua Roberts Senator Orrin Hatch (R-UT) during the second day of confirmation hearings on Senator Jeff Sessions (R-AL) nomination to be U.S. attorney general in Washington, U.S. January 11, 2017. REUTERS/Joshua Roberts Sen. Mike Lee (R-UT) speaks at a rally for nominee Neil Gorsuch outside the Supreme Court in Washington, D.C., U.S. March 29, 2017. REUTERS/Aaron P. Bernstein UNITED STATES - APRIL 4: Sen. John Barrasso, R-Wyo., speaks as Senate Republican leaders hold their media availability focusing on the confirmation of Neil Gorsuch as associate justice of the Supreme Court following their policy lunch on Tuesday, April 4, 2017. (Photo By Bill Clark/CQ Roll Call)
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Two other Republican senators - Lindsey Graham and Bill Cassidy - announced an alternative plan.

The proposal replaces an earlier one that deeply divided Trump's fellow Republicans, who control the Senate, drawing opposition from both moderates and hard-line conservatives. McConnell has planned for a vote on the new bill next week.

The provision allowing insurers to offer stripped-down, low-cost healthcare plans that do not comply with Obamacare regulations to cover certain health benefits, as proposed by Senator Ted Cruz, was aimed at winning over holdout conservatives.

The benefits currently required include maternity and newborn care, mental health services and addiction treatment, outpatient care, hospitalization, emergency room visits and prescription drugs.

Insurer groups, including the national Blue Cross Blue Shield Association, have derided these "skinny plans," saying they would raise insurance premiums, destabilize the individual insurance market and undermine protections for pre-existing medical conditions. Moderate senators could balk at the provision for the same reasons.

SEE ALSO: US refugee admissions surpass Trump's 50,000-person cap

The legislation represented a retreat from long-standing Republican aspirations to dump Obamacare-related taxes.

It retains two taxes on the wealthy that helped pay for the Obamacare law that the previous version would have repealed. They are: a 3.8 percent tax on net investment income for individuals earning more than $200,000 and couples earning more than $250,000; and a 0.9 percent surtax for the Medicare insurance program for the elderly on people with those incomes.

It also kept Obamacare's limits on corporate tax deductions for executive pay in the health insurance industry.

The new bill provides additional funds to help stabilize the individual insurance market, providing $70 billion on top of the $112 billion in the original bill. That would help insurers hold down growth in the cost of insurance premiums and help lower-income insurance holders cover out-of-pocket medical expenses.

The bill retains the previous bill's phase-out of the Obamacare expansion of the Medicaid government health insurance program for the poor and disabled and sharp cuts to federal Medicaid spending beginning in 2025.

RELATED: A look at the contentious history of Obamacare

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UNITED STATES - MARCH 23: Pro-choice demonstrators including Stephanie Castro, right, and Sandra Sanchez of the National Latina Institute for Reproductive Health, appear outside of the Supreme Court as arguments were heard in a case which religious organizations are challenging the Affordable Care Act's provision that requires employers to cover birth control in health care plans, March 23, 2016. (Photo By Tom Williams/CQ Roll Call) US President Barack Obama greets attendees after speakin on the Affordable Care Act at the United Community Center in Milwaukee, Wisconsin on March 3, 2016. / AFP / MANDEL NGAN (Photo credit should read MANDEL NGAN/AFP/Getty Images) Demonstrators opposed to U.S. President Barack Obama's health-care law, Obamacare, hold signs in front of the U.S. Supreme Court in Washington, D.C., U.S., on Wednesday, March 4, 2015. A U.S. Supreme Court argument over Obamacare's tax subsidies divided the justices along ideological lines, potentially leaving two pivotal justices to decide the law's fate. Photographer: Andrew Harrer/Bloomberg via Getty Images Demonstrators opposed to U.S. President Barack Obama's health-care law, Obamacare, hold signs in front of the U.S. Supreme Court in Washington, D.C., U.S., on Wednesday, March 4, 2015. A U.S. Supreme Court argument over Obamacare's tax subsidies divided the justices along ideological lines, potentially leaving two pivotal justices to decide the law's fate. Photographer: Andrew Harrer/Bloomberg via Getty Images Representative Steve King, a Republican from Iowa, speaks at the Tea Party Patriots podium in front of the U.S. Supreme Court in Washington, D.C., U.S., on Wednesday, March 4, 2015. A U.S. Supreme Court argument over Obamacare's tax subsidies divided the justices along ideological lines, potentially leaving two pivotal justices to decide the law's fate. Photographer: Andrew Harrer/Bloomberg via Getty Images Pamela Hurst, center, speaks to the media as her husband Douglas Hurst, a plaintiff in King v. Burwell, right, looks on in front of the U.S. Supreme Court with Michael Carvin, lead attorney for the petitioners and partner at Jones Day, left, in Washington, D.C., U.S., on Wednesday, March 4, 2015. A U.S. Supreme Court argument over Obamacare's tax subsidies divided the justices along ideological lines, potentially leaving two pivotal justices to decide the law's fate. Photographer: Andrew Harrer/Bloomberg via Getty Images Kathleen Sebelius, former secretary of Health and Human Services (HHS), center, speaks to members of the media in front of the U.S. Supreme Court in Washington, D.C., U.S., on Wednesday, March 4, 2015. A U.S. Supreme Court argument over Obamacare's tax subsidies divided the justices along ideological lines, potentially leaving two pivotal justices to decide the law's fate. Photographer: Andrew Harrer/Bloomberg via Getty Images Demonstrator Donna Hurlock, a medical doctor from Virginia opposed to U.S. President Barack Obama's health-care law, Obamacare, holds a 'No Obamacare' umbrella in front of the U.S. Supreme Court in Washington, D.C., U.S., on Wednesday, March 4, 2015. A U.S. Supreme Court argument over Obamacare's tax subsidies divided the justices along ideological lines, potentially leaving two pivotal justices to decide the law's fate. Photographer: Andrew Harrer/Bloomberg via Getty Images UNITED STATES - MARCH 04: Rep. Louie Gohmert, R-Texas, speaks at a rally outside of the Supreme Court during arguments in the King v. Burwell case which deals with tax credits in the Affordable Care Act, March 4, 2015. (Photo By Tom Williams/CQ Roll Call) UNITED STATES - MARCH 04: Rep. Louie Gohmert, R-Texas, speaks at a rally outside of the Supreme Court during arguments in the King v. Burwell case which deals with tax credits in the Affordable Care Act, March 4, 2015. (Photo By Tom Williams/CQ Roll Call) Demonstrator Nell Robinson, a medical student from George Washington University, holds a sign in favor of to U.S. President Barack Obama's health-care law, Obamacare, in front of the U.S. Supreme Court in Washington, D.C., U.S., on Wednesday, March 4, 2015. A U.S. Supreme Court argument over Obamacare's tax subsidies divided the justices along ideological lines, potentially leaving two pivotal justices to decide the law's fate. Photographer: Andrew Harrer/Bloomberg via Getty Images Demonstrator Elodie Huttner holds a sign in support of U.S. President Barack Obama's health-care law, Obamacare, in front of the U.S. Supreme Court in Washington, D.C., U.S., on Wednesday, March 4, 2015. A U.S. Supreme Court argument over Obamacare's tax subsidies divided the justices along ideological lines, potentially leaving two pivotal justices to decide the law's fate. Photographer: Andrew Harrer/Bloomberg via Getty Images This image taken March 31, 2014 in Washington, DC shows the home page for the HealthCare.gov internet site. Today is the deadline day for uninsured Americans to sign up for coverage through US President Barack Obama's signature healthcare law, the Affordable Care Act. (KAREN BLEIER/AFP/Getty Images) UNITED STATES - JULY 16: Nicholas Diebel, 14, son of Chairman Pete Sessions, R-Texas, sits at the dais before a House Rules Committee hearing in the Capitol, July 16, 2014, on the constitutionality of a House Republican led lawsuit against President Obama for allegedly overstepping his authority with certain provisions in his health care law. (Photo By Tom Williams/CQ Roll Call) UNITED STATES - JULY 10: From left, Sen. Mark Udall, D-Colo., Charles Schumer, D-N.Y., Senate Majority Leader Harry Reid, D-Nev., Senate Majority Whip Richard Durbin, D-Ill., and Sen. Patty Murray, D-Wash., conduct a news conference in the Capitol's Senate studio, July 10, 2014, on legislation regarding the Supreme Court decision to allow employers to opt out of the contraception mandate in the Affordable Care Act. (Photo By Tom Williams/CQ Roll Call) UNITED STATES - JULY 10: Sen. Mark Udall, D-Colo., conducts a news conference in the Capitol's Senate studio, July 10, 2014, on legislation regarding the Supreme Court decision to allow employers to opt out of the contraception mandate in the Affordable Care Act. (Photo By Tom Williams/CQ Roll Call) Activists opposed the Affordable Care Act's employer contraceptive mandate celebrate outside of the U.S. Supreme Court in Washington, D.C., U.S., on Monday, June 30, 2014. The Supreme Court dealt a blow to President Barack Obama's health-care law, ruling that closely held companies can claim a religious exemption from the requirement that they offer birth-control coverage in their worker health plans. (Pete Marovich/Bloomberg via Getty Images) Activists who support the Affordable Care Act's employer contraceptive mandate hold signs outside of the U.S. Supreme Court in Washington, D.C., U.S., on Monday, June 30, 2014. The Supreme Court dealt a blow to President Barack Obama's health-care law, ruling that closely held companies can claim a religious exemption from the requirement that they offer birth-control coverage in their worker health plans. (Pete Marovich/Bloomberg via Getty Images) Activists who support the Affordable Care Act's employer contraceptive mandate demonstrate outside of the U.S. Supreme Court in Washington, D.C., U.S., on Monday, June 30, 2014. The Supreme Court dealt a blow to President Barack Obama's health-care law, ruling that closely held companies can claim a religious exemption from the requirement that they offer birth-control coverage in their worker health plans. (Pete Marovich/Bloomberg via Getty Images) Anti-abortion demonstrators hold signs during a Priests for Life protest outside the US Court of Appeals for the DC Circuit Court as the Court hears the oral arguments in the 'Priests for Life v. US Department of Health and Human Services (HHS)' case in Washington, DC, on May 8, 2014. The case centers around the HHS mandate in the Affordable Care Act, known as Obamacare, that religious organizations must cover contraceptions and abortion as part of their health insurance benefits, even if that goes against the organization's religious beliefs. (SAUL LOEB/AFP/Getty Images) Anti-abortion demonstrators hold signs during a Priests for Life protest outside the US Court of Appeals for the DC Circuit Court as the Court hears the oral arguments in the 'Priests for Life v. US Department of Health and Human Services (HHS)' case in Washington, DC, on May 8, 2014. The case centers around the HHS mandate in the Affordable Care Act, known as Obamacare, that religious organizations must cover contraceptions and abortion as part of their health insurance benefits, even if that goes against the organization's religious beliefs. (SAUL LOEB/AFP/Getty Images) HOLLYWOOD, FL - APRIL 15: Felue Chang who is newly insured under an insurance plan through the Affordable Care Act receives a checkup from Dr. Peria Del Pino-White at the South Broward Community Health Services clinic on April 15, 2014 in Hollywood, Florida. A report released by the Congressional Budget Office indicates that the Affordable Care Act will cost $5 billion less than originally projected for 2014. (Photo by Joe Raedle/Getty Images) US President Barack Obama speaks about the Affordable Care Act, also known as Obamacare, with Vice President Joe Biden (R) in the Rose Garden at the White House in Washington on April 1, 2014. Hundreds of thousands of Americans rushed to buy Obama's new health insurance plans on March 31, prompting a victory lap from a White House that paid a steep political price for its greatest achievement. The scramble to sign up under Obama's health care law at the end of a six-month enrollment window caused website glitches and long lines at on-the-spot enrollment centers. AFP PHOTO/Nicholas KAMM (Photo credit should read NICHOLAS KAMM/AFP/Getty Images) MIAMI, FL - MARCH 31: Norma Licciardello sits with an agent from Sunshine Life and Health Advisors as they wait for the Affordable Care Act website to come back on line as she tries to purchases a health insurance plan at a store setup in the Mall of Americas on March 31, 2014 in Miami, Florida. Today is the last day for the first yearly sign-up period and Sunshine Life and Health saw a wait of four hours or more for people to see a health insurance advisor. (Photo by Joe Raedle/Getty Images) MIAMI, FL - MARCH 31: Norma Licciardello sits with an agent from Sunshine Life and Health Advisors as they wait for the Affordable Care Act website to come back on line as she tries to purchases a health insurance plan at a store setup in the Mall of Americas on March 31, 2014 in Miami, Florida. Today is the last day for the first yearly sign-up period and Sunshine Life and Health saw a wait of four hours or more for people to see a health insurance advisor. (Photo by Joe Raedle/Getty Images) MIAMI, FL - MARCH 31: Jose Villanueva (L) and Doraisy Avila sit with an agent from Sunshine Life and Health Advisors as they look at a pricing plan available from the Affordable Care Act at a store setup in the Mall of Americas on March 31, 2014 in Miami, Florida. Today is the last day for the first yearly sign-up period and Sunshine Life and Health saw a wait of four hours or more for people to see a health insurance advisor. (Photo by Joe Raedle/Getty Images) MIAMI, FL - MARCH 31: People stand in the line to register to meet with Sunshine Life and Health Advisors that are selling insurance under the Affordable Care Act at a store setup in the Mall of Americas on March 31, 2014 in Miami, Florida. Today is the last day for the first yearly sign-up period and Sunshine Life and Health saw a wait of four hours or more for people to see a health insurance advisor. (Photo by Joe Raedle/Getty Images) MIAMI, FL - MARCH 31: Andres Cuartas (L) sits with Mercedes Mujica an agent with Sunshine Life and Health Advisors as he purchases a health insurance plan under the Affordable Care Act at a store setup in the Mall of Americas on March 31, 2014 in Miami, Florida. Today is the last day for the first yearly sign-up period and Sunshine Life and Health saw a wait of four hours or more for people to see a health insurance advisor. (Photo by Joe Raedle/Getty Images) This image taken March 31, 2014 in Washington, DC shows the home page for the White House site indicating the amount of time remaining before open enrollment for the Affordable Care Act closes. Today is the deadline day for uninsured Americans to sign up for coverage through US President Barack Obama's signature healthcare law, the Affordable Care Act. AFP PHOTO / Karen BLEIER (Photo credit should read KAREN BLEIER/AFP/Getty Images) A Choose Health Delaware sign stands outside an Affordable Care Act enrollment event in Milford, Delaware, U.S., on Thursday, March 27, 2014. Six million Americans have signed up for private health plans under Obamacare, President Barack Obama said, a symbolic milestone for a government that has struggled to get the law off the ground. Photographer: Andrew Harrer/Bloomberg via Getty Images Marketplace guide Jim Prim works on the Healthcare.gov federal enrollment website as he helps a resident sign up for a health insurance plan under the Affordable Care Act at an enrollment event in Milford, Delaware, U.S., on Thursday, March 27, 2014. Six million Americans have signed up for private health plans under Obamacare, President Barack Obama said, a symbolic milestone for a government that has struggled to get the law off the ground. Photographer: Andrew Harrer/Bloomberg via Getty Images A Health Insurance Marketplace application checklist hangs at a Westside Family Healthcare center during an Affordable Care Act enrollment event in Bear, Delaware, U.S., on Thursday, March 27, 2014. Six million Americans have signed up for private health plans under Obamacare, President Barack Obama said, a symbolic milestone for a government that has struggled to get the law off the ground. Photographer: Andrew Harrer/Bloomberg via Getty Images Certified application counselor Tina Gaffney helps a resident create an account for a health insurance plan under the Affordable Care Act at a Westside Family Healthcare center enrollment event in Bear, Delaware, U.S., on Thursday, March 27, 2014. Six million Americans have signed up for private health plans under Obamacare, President Barack Obama said, a symbolic milestone for a government that has struggled to get the law off the ground. Photographer: Andrew Harrer/Bloomberg via Getty Images Marketplace guide Stephanie Cantres helps a resident sign up for a health insurance plan under the Affordable Care Act at a Westside Family Healthcare center enrollment event in Bear, Delaware, U.S., on Thursday, March 27, 2014. Six million Americans have signed up for private health plans under Obamacare, President Barack Obama said, a symbolic milestone for a government that has struggled to get the law off the ground. Photographer: Andrew Harrer/Bloomberg via Getty Images MIAMI, FL - MARCH 20: Raquel Martinez, Maria Celia Escalona, Flora Motell and Armando Mesa (L-R) wait for their names to be called to speak with an insurance agent from Sunshine Life and Health Advisors as they and others try to purchase health insurance under the Affordable Care Act at a store setup in the Mall of Americas on March 20, 2014 in Miami, Florida. The owner of Sunshine Life and Health Advisors, Odalys Arevalo, said she has seen a surge in people, some waiting up to 3 hours or more in line, trying to sign up for the Affordable Care Act before the open enrollment period for individual insurance ends on March 31. (Photo by Joe Raedle/Getty Images) MIAMI, FL - FEBRUARY 13: Hisham Uadadeh walks out of Leading Insurance Agency after enrolling in a health insurance plan under the Affordable Care Act on February 13, 2014 in Miami, Florida. Numbers released by the government showed that about 3.3 million people signed up for health insurance plans under the Affordable Care Act through the end of January. (Photo by Joe Raedle/Getty Images) MIAMI, FL - FEBRUARY 13: Hisham Uadadeh enrolls in a health insurance plan under the Affordable Care Act with the help of A. Michael Khoury at Leading Insurance Agency on February 13, 2014 in Miami, Florida. Numbers released by the government showed that about 3.3 million people signed up for health insurance plans under the Affordable Care Act through the end of January. (Photo by Joe Raedle/Getty Images) US Representative Greg Walden, Republican of Oregon and chairman of the National Republican Congressional Committee, speaks during a press conference about healthcare and the Affordable Care Act, known as Obamacare, at the Republican National Committee in Washington, DC, January 28, 2014. AFP PHOTO / Saul LOEB (Photo credit should read SAUL LOEB/AFP/Getty Images) JACKSON, KY - JANUARY, 22: Dr. Derrick Hamilton listens to Breathitt County resident Mary Blair's heartbeat during her appointment at the Breathitt County Family Health Center on Tuesday, January 21, 2014 in Jackson, Ky. Despite suffering from a past heart attack and diabetes Blair was able to receive medical coverage through Medicaid expansion under the Affordable Care Act. (Photo by Luke Sharrett/For The Washington Post via Getty Images) Obamacare Affordable Care Act Healthcare Breathitt County LOS ANGELES, CA - JANUARY 20: Supporters of the Affordable Care Act (ACA) march in the 29th annual Kingdom Day Parade on January 20, 2014 in Los Angeles, California. The Kingdom Day Parade honors the memory of African-American civil rights leader Martin Luther King Jr. and coincides with Martin Luther King Day. (Photo by David McNew/Getty Images) MIAMI, FL - JANUARY 15: As people stand in line to speak with an insurance agent Dailem Delombard sits with an agent from Sunshine Life and Health Advisors as she tries to purchase health insurance under the Affordable Care Act at the kiosk setup at the Mall of Americas on January 15, 2014 in Miami, Florida. Today is deadline day for those that want insurance to start on February the 1st. According to the owner of Sunshine Life and Health Advisors, Odalys Arevalo, their business selling insurance under the Affordable Care Act has exploded so much so that by the end of the week they will be moving to a 24,000 square foot space at the mall because they have outgrown the kiosk. They have over 25 agents and are seeing hundreds of people daily, last Saturday they saw about 1,000 people with wait times of over 5 hours. (Photo by Joe Raedle/Getty Images) A woman holding a sign in support of the Affordable Care Act is seen as US President Barack Obama's motorcade returns to his vacation compound from the gym at Marine Corps Base Hawaii on December 29, 2013 in Kaneohe Bay, Hawaii. The first family is in Hawaii for their annual holiday vacation. AFP PHOTO / Kent NISHIMURA (Photo credit should read Kent Nishimura/AFP/Getty Images) Fliers promoting the Get Covered Illinois health insurance marketplace sit in a box at the Bureau County Health Department offices in Princeton, Illinois, U.S., on Wednesday, Dec. 18, 2013. Todays deadline for Americans to sign up for Obamacare health coverage effective Jan. 1 was extended until midnight tomorrow as heavy traffic to the online enrollment system caused a queuing system to be activated Photographer: Daniel Acker/Bloomberg via Getty Images Samantha Guzman, an Affordable Care Act navigator with the Bureau and Putnam County Health Department, center, assists Jackie Karns as she shops for health insurance at the Bureau County Health Department offices in Princeton, Illinois, U.S., on Wednesday, Dec. 18, 2013. Todays deadline for Americans to sign up for Obamacare health coverage effective Jan. 1 was extended until midnight tomorrow as heavy traffic to the online enrollment system caused a queuing system to be activated Photographer: Daniel Acker/Bloomberg via Getty Images MIAMI, FL - DECEMBER 11: Susana Hernandez (L) speaks with Rosaly Hernandez, an insurance agent with Sunshine Life and Health Advisors, about purchasing insurance under the Affordable Care Act at a kiosk setup at the Mall of Americas on December 11, 2013 in Miami, Florida. As Health and Human Services Secretary Kathleen Sebelius tesified in Washington, DC before a congressional panel that the Affordable Care Act website was improving, the Sunshine Life and Health Advisors said, that they are starting to see a steady increase in the numbers of people coming to them to purchase and understand the policies offered under the Affordable Care Act. (Photo by Joe Raedle/Getty Images) Enrollee Douglas Sparks waits to speak to a health navigator at a health insurance education and enrollment event in Silver Spring, Maryland, U.S., on Saturday, Dec. 7, 2013. Government-run health insurance exchanges are at the core of the Patient Protection and Affordable Care Act of 2010 known as Obamacare that seeks to provide access to health coverage for many of the country's estimated 48 million uninsured. Photographer: Andrew Harrer/Bloomberg via Getty Images Copies of the application for the Health Insurance Marketplace from the Department of Health and Human Services (HHS) are arranged for a in Washington, D.C., U.S., on Friday, Dec. 6, 2013. The health-care website's improved performance has both U.S. political parties shifting strategies, with President Barack Obama's team preparing a January advertising blitz and a wave of celebrity promotions to boost enrollment, allies said. Photographer: Andrew Harrer/Bloomberg via Getty Images An affordable health coverage sign stands a health insurance education and enrollment event in Silver Spring, Maryland, U.S., on Saturday, Dec. 7, 2013. Government-run health insurance exchanges are at the core of the Patient Protection and Affordable Care Act of 2010 known as Obamacare that seeks to provide access to health coverage for many of the country's estimated 48 million uninsured. Photographer: Andrew Harrer/Bloomberg via Getty Images HIALEAH, FL - NOVEMBER 14: Venita Mendez works with Gisselle Rubio, an insurance agent with Sunshine Life and Health Advisors, as she looks to purchase an insurance policy under the Affordable Care Act at the store setup in the Westland Mall on November 14, 2013 in Hialeah, Florida. As the insurance agents continue to help people purchase and understand the policies offered under the Affordable Care Act, U.S. President Barack Obama announced that Americans who have had their health insurance plans canceled because of the Affordable Care Act can keep those plans for another year if they wish to. (Photo by Joe Raedle/Getty Images) The Healthcare.gov website is displayed on a laptop computer arranged for a photograph in Washington, D.C., U.S., on Monday, Nov. 4, 2013. The race to construct an online insurance exchange by Oct. 1 spurred the Obama administration to use an expedited bidding system that limited its choice of a builder to just four companies, including CGI Group Inc. Photographer: Andrew Harrer/Bloomberg via Getty Images
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Although the bill retains the two taxes on the wealthy that would have been eliminated in the earlier version, it would still repeal certain other Obamacare taxes, end a penalty on individuals who do not obtain insurance and overhaul Obamacare subsidies to help people buy insurance with tax credits.

Moderate Republicans were spurned in their desire to see a reduction in Medicaid cuts in the revised version.

Hospital and insurer groups have spoken out against the Senate Republican approach, particularly proposed Medicaid cuts. The cuts would result in lower revenues for hospital companies like Community Health Systems Inc and Medicaid insurance specialists like Molina Healthcare and Centene Corp .

Ipsita Smolinski, managing director at healthcare research consulting firm Capitol Street, said there were some positives for businesses including the provisions eliminating taxes on the pharmaceutical, medical device and health insurance industries.

SEE ALSO: Debbie Wasserman Schultz is trying to strip Jared Kushner of his security clearance

Another positive for health insurers is the additional funds to help stabilize the individual exchange market, Smolinski said.

The Affordable Care Act, dubbed Obamacare, expanded health insurance coverage to some 20 million people, in large part by expanding Medicaid.

The new bill includes another $45 billion for fighting the opioid addiction epidemic that has hit large parts of the nation, on top of the $2 billion in the earlier version.

The nonpartisan Congressional Budget Office is due to evaluate the new bill in the coming days. It forecast that the previous version would have increased the number of people without health insurance by 22 million by 2026.

"TIME TO DELIVER"

Repealing and replacing Obamacare, which Republicans fault as a costly government intrusion into the healthcare system, was a top campaign promise for Trump, who was monitoring the Senate developments during his visit to France.

"The American people deserve better than the pain of Obamacare. They deserve better care. And the time to deliver that to them is next week," said McConnell, who was forced two weeks ago to put off a scheduled vote on the first bill after a revolt within Republican ranks.

The House of Representatives on May 4 passed its own version of healthcare legislation. Trump on Wednesday said he would be "very angry" if Congress does not achieve final passage.

Republicans have a 52-48 Senate majority, with Vice President Mike Pence able to cast a potential tie-breaking vote. If the Senate passes a bill, it would have to go back to the House for its approval.

The alternative offered by Graham and Cassidy would redirect much of Obamacare's federal funding for health insurance to states.

The continuing lack of consensus among Republicans on what to do with Obamacare after calling for its demise since Congress passed it in 2010 with only Democratic votes shows that it is no sure thing that Trump's party will be able to get the job done.

Healthcare is Trump's first major legislative initiative. Failure would call into question his party's ability to govern despite controlling both chambers of Congress and the White House.

(Additional reporting by Yasmeen Abutaleb, Caroline Humer, Eric Walsh, Lewis Krauskopf and Richard Cowan; Writing by Will Dunham; Editing by Jonathan Oatis and Leslie Adler)

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