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Even if health bill 'crashes and burns,' GOP will pivot to tax reform

  • Republicans will shift to tax reform if there is another health bill failure, health-care analyst Kim Monk said.
  • Monk said the GOP's attempt at reforming health care is "possible," but not "probable."

Republicans will move on to tax reform in the event of another health bill failure, health-care analyst Kim Monk said Friday.

"I would say even if repeal and replace crashes and burns, they will be able to pivot to tax reform at some point," Monk, an analyst at Capital Alpha Partners, said on "Squawk Box."

Monk's comment came after CNBC obtained a document on Thursday detailing Republican lawmakers' new plan to repeal and replace Obamacare in a bid to bridge the gap between the House Freedom Caucus and moderates.

In March, House Republicans pulled their first attempt at a Obamacare replacement, dubbed the American Health Care Act, due in large part to opposition from both conservative and moderate Republicans.

Monk told CNBC the GOP's attempt at reforming health care is "possible," but not "probable."

"Coming up next week they're going to have to deal with government funding — either have to extend the continuing resolution or kick the can for a couple of weeks," she said. "More immediately on health care, they'll have to deal with the Obamacare subsidies, CSRs. I would say they will in the background continue to spend some time on repeal and replace because the stakes are very high."

On Thursday, Treasury Secretary Steven Mnuchin said the Trump administration is close to bringing forward "major tax reform."

The promise of a tax overhaul and looser regulations by President Donald Trump partly fueled stock market gains in the months after Trump's election.