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Senate GOP Back Trump's Proposal to Replace Affordable Care Act

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 end the impasse appeared to recede as Republican senators floated a proposal unacceptable to Democrats: scrapping the ACA, known as Obamacare.

Deepening Consequences of Government Shutdown

The effect on Americans from the longest shutdown of the US government in history deepened on Saturday, as federal workers went without pay, airlines were forced to ground planes and Supplemental Nutrition Assistance Program benefits have been postponed for 42 million Americans.

Trump's Plan from Golf Course

As Saturday's session got started, GOP senators embraced a suggestion made on online platforms early Saturday by Donald Trump from his golf course in West Palm Beach, for subsidies to be substituted 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 posted.

GOP Support

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

"We're going to replace this broken system with something that is actually better for the patient," one senator stated.

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

"I'm writing the bill right now," a third senator wrote in reply to Trump's proposal. "We must stop taxpayer money from going to carriers and instead give it straight to Americans in health savings accounts and let them buy the medical coverage they want."

Democratic Reaction

Democratic lawmakers shared concerned reactions to Trump's proposal.

"In other words, Donald Trump's 'proposal' for health care is another cynical attempt to repeal Obamacare," one Democratic senator commented. "It's the same unsuccessful Republican plan that's been defeated by voters and Congress."

Another senator responded to the criticism of insurance companies by writing: "Well, Trump and the Republicans can't stand how the large insurance companies are overcharging Americans. Really? Then I applaud your support for Medicare for All."

Continuing Negotiations

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

One Democratic senator, who is leading the talks among moderates, said that Democrats "need another path forward" after Republicans rejected an proposal to reopen the government and continue the subsidies for a year.

Another senior Democratic senator persisted in maintaining that Republicans should accept a one-year extension of the subsidies before discussing the long-term of the subsidies.

"Doing nothing is derelict because people will go bankrupt, people will lose insurance, people will get more ill," the senator said in a Senate address. "That's what will happen if this Congress fails to act."

Political Situation

None of the Republican senators seemed to address the fact that patients would still need to buy coverage from the same carriers, or that Republican legislators need the backing of several Democrats to reopen the government, and the idea of eliminating and substituting Obamacare with HSAs is improbable to earn a single Democratic vote.

Some analysts suggested that the core of such a plan would remove the ACA's requirement that insurance companies cover patients with existing health issues.

After his golf outing, Trump went back to his residence and doubled down on his demand that Republicans stop seeking compromise and try instead to repeal and replace Obamacare with a iteration of the proposal that failed to secure enough backing in 2017.

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About the author

Anna Lane

A financial analyst with over a decade of experience in market trends and investment strategies, specializing in UK and global markets.

UltraExchange UK

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