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Senate Republicans Back President's Proposal to Overhaul Obamacare

American senators are meeting during the weekend for the first time since the federal closure began more than a month ago, but hopes for a cross-party deal on how to resolve the standoff appeared to recede as GOP senators proposed a plan toxic to Democrats: eliminating the Affordable Care Act, known as Obamacare.

Growing Consequences of Government Shutdown

The impact on US citizens from the longest shutdown of the US government in history worsened on Saturday, as federal workers went unpaid, carriers were forced to cancel flights and Supplemental Nutrition Assistance Program benefits have been postponed for forty-two million Americans.

Trump's Plan from Golf Course

As weekend session got started, GOP senators embraced a suggestion made on social media early Saturday by Donald Trump from his golf course in West Palm Beach, for subsidies to be replaced by HSA-style accounts.

"I am recommending to Senate Republicans that the Hundreds of 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

Multiple Republican senators praised the plan, which is similar to a replacement for Obamacare proposed in 2017.

"We're going to replace this broken system with something that is truly better for the consumer," one senator said.

Another senator praised Trump's proposal on online platforms, and displayed 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 reply to Trump's suggestion. "We must stop public funds from going to insurance companies and instead give it straight to Americans in HSA-style accounts and let them buy the medical coverage they want."

Opposition Response

Opposition senators shared alarmed responses to Trump's proposal.

"Essentially, Donald Trump's 'concept of a plan' for health care is another cynical attempt to repeal Obamacare," one Democratic senator stated. "It's the same unsuccessful Republican plan that's been rejected by the public and Congress."

Another senator reacted to the criticism of carriers by writing: "Well, Trump and the Republicans dislike how the large insurance companies are ripping-off Americans. Seriously? In that case I welcome your support for universal healthcare."

Continuing Talks

The Senate adjourned without reaching a resolution, but Senate Republican leaders have indicated an openness to an emerging plan from a small group of centrist lawmakers to end the shutdown in return for a later vote on the ACA payments.

One Democratic senator, who is spearheading the talks among moderates, said that Democrats "require another path forward" after Republicans rejected an offer to restart the government and extend the payments for a year.

Another leading Democratic senator persisted in arguing that Republicans should agree to a 12-month continuation of the subsidies before negotiating the long-term of the subsidies.

"Inaction is derelict because citizens will go into debt, people will become uninsured, people will get more ill," the senator said 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 lawmakers need the backing of eight Democrats to reopen the government, and the idea of repealing and replacing Obamacare with HSAs is unlikely to earn a solitary Democratic vote.

Several analysts indicated that the essence of such a proposal would eliminate the ACA's mandate that insurance companies cover patients with existing health issues.

After his golf outing, Trump went back to his private club and doubled down on his insistence that Republicans stop seeking agreement and try instead to eliminate and overhaul Obamacare with a iteration of the plan that was unsuccessful to garner enough support in 2017.

By

Tyler Dunn

A seasoned financial analyst with over 15 years of experience in global markets and portfolio management.

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