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Senate Republicans Support Trump's Call to Overhaul Affordable Care Act

US senators are working through the weekend for the first time since the federal closure began over a month ago, but expectations for a bipartisan agreement on how to end the standoff appeared to diminish as GOP senators floated a proposal toxic to Democrats: eliminating the ACA, known as Obamacare.

Growing Impact of Federal Closure

The impact on Americans from the lengthiest closure of the US government in history worsened on Saturday, as government employees went unpaid, airlines were forced to cancel flights and Supplemental Nutrition Assistance Program benefits have been postponed for forty-two million Americans.

President's Plan from Golf Course

As weekend meeting got started, Republican senators welcomed a proposal made on social media early Saturday by Donald Trump from his resort in West Palm Beach, for government payments to be substituted by health savings accounts.

"I am recommending to Senate Republicans that the Hundreds of Billions of Dollars currently being sent to money sucking 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 posted.

GOP Support

Several Republican senators praised the proposal, which is comparable with 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 social media, and displayed a large print of Trump's post as he spoke on the Senate floor.

"I'm writing the bill right now," a third senator posted in response to Trump's suggestion. "We must stop public funds from going to carriers and instead give it directly to Americans in HSA-style accounts and let them buy the medical coverage they want."

Democratic Reaction

Democratic lawmakers expressed alarmed responses to Trump's proposal.

"Essentially, Donald Trump's 'proposal' for health care is another cynical attempt to eliminate Obamacare," one Democratic senator stated. "This is the same failed Republican plan that's been defeated by the public and Congress."

Another lawmaker reacted to the censure of carriers by writing: "Well, Trump and the Republicans can't stand how the large insurance companies are overcharging Americans. Really? In that case I welcome your support for Medicare for All."

Ongoing Negotiations

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

One Democratic senator, who is leading the negotiations among moderates, said that Democrats "require another way ahead" after Republicans rejected an offer to reopen the government and continue the payments for a year.

Another senior Democratic senator continued in arguing that Republicans should accept a one-year extension of the payments before negotiating the future of the tax credits.

"Inaction is derelict because citizens will go bankrupt, people will lose insurance, people will get sicker," the senator stated in a Senate address. "That's what will happen if this Congress does nothing."

Partisan Situation

None of the Republican senators seemed to grapple with the fact that patients would still need to buy plans from the same insurance companies, or that Republican lawmakers need the support of several Democrats to reopen the government, and the idea of eliminating and replacing Obamacare with savings accounts is unlikely to earn a single Democratic vote.

Some observers suggested that the essence of such a proposal would remove the ACA's requirement that carriers cover individuals with pre-existing conditions.

After his resort visit, Trump returned to his residence and doubled down on his insistence that Republicans stop seeking compromise and try instead to repeal and replace Obamacare with a iteration of the plan that failed to secure enough backing in 2017.

TZ
The writer

Tara Zuniga

Financial strategist and market analyst with over a decade of experience in global markets.

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