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Senate GOP Embrace Trump's Proposal to Overhaul Obamacare

US lawmakers are working through the weekend for the initial time since the federal closure began more than a month ago, but hopes for a bipartisan agreement on how to resolve the impasse appeared to recede as Republican senators proposed a proposal toxic to Democrats: eliminating the ACA, known as Obamacare.

Deepening Impact of Government Shutdown

The impact on US citizens from the longest closure of the US government in history worsened on Saturday, as federal workers went unpaid, airlines were compelled to cancel flights and Supplemental Nutrition Assistance Program benefits have been delayed for 42 million Americans.

Trump's Proposal from Golf Course

As Saturday's session got under way, Republican senators welcomed a suggestion made on social media early Saturday by Donald Trump from his resort in West Palm Beach, for government payments to be replaced by health savings accounts.

"I am recommending to Senate Republicans that the Billions of Dollars currently being sent to profit-driven Insurance Companies in order to save the ineffective Healthcare provided by ObamaCare, BE SENT DIRECTLY TO THE PEOPLE SO THAT THEY CAN PURCHASE THEIR OWN, MUCH BETTER, HEALTHCARE," Trump wrote.

GOP Support

Several Republican senators praised the proposal, which is similar to a alternative for Obamacare put forward in 2017.

"We will replace this failing program with something that is actually better for the patient," one senator said.

Another senator praised Trump's suggestion on social media, and stood next to a large print of Trump's post as he addressed on the Senate floor.

"I am drafting the bill right now," a third senator wrote in response to Trump's suggestion. "We must stop public funds from going to carriers and instead give it straight to Americans in health savings accounts and let them buy the medical coverage they want."

Opposition Reaction

Democratic senators shared concerned responses to Trump's plan.

"In other words, Donald Trump's 'proposal' for health care is yet another calculated attempt to repeal Obamacare," one Democratic senator stated. "This is the same failed Republican plan that's been defeated by voters and Congress."

Another lawmaker responded to the criticism of insurance companies by posting: "Well, Trump and the Republicans can't stand how the large insurance companies are ripping-off Americans. Seriously? In that case I welcome your support for Medicare for All."

Ongoing Talks

The Senate adjourned without finding a resolution, but Senate Republican leaders have indicated an willingness to an developing plan from a small group of moderate Democrats to end the shutdown in return for a later vote on the ACA payments.

One Democratic senator, who is spearheading the negotiations among moderates, said that Democrats "require another path forward" after Republicans rejected an offer to reopen the government and continue the subsidies for a year.

Another leading Democratic senator persisted in maintaining that Republicans should agree to a 12-month continuation of the subsidies before negotiating the future of the tax credits.

"Inaction is irresponsible because citizens will go into debt, people will lose insurance, people will get more ill," the senator stated in a floor speech. "That's what will happen if this Congress does nothing."

Partisan Dynamics

Not one of the Republican senators seemed to grapple with the fact that patients would still need to buy coverage from the same carriers, or that Republican legislators need the support of eight Democrats to restart the government, and the idea of eliminating and replacing Obamacare with HSAs is unlikely to earn a single Democratic vote.

Several observers indicated that the essence of such a proposal would remove the ACA's mandate that carriers cover patients with pre-existing conditions.

After his golf outing, Trump returned to his residence and reiterated on his insistence that Republicans stop seeking compromise and try instead to repeal and replace Obamacare with a iteration of the proposal that failed to secure enough support in 2017.

The writer

Anthony Hunt

A seasoned financial analyst with over a decade of experience in market trends and economic forecasting.

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