Senate GOP Embrace Trump's Proposal to Replace Obamacare

American lawmakers are meeting during the weekend for the initial time since the government shutdown began more than a month ago, but hopes for a bipartisan agreement on how to resolve the impasse appeared to diminish as GOP senators floated a plan unacceptable to Democrats: scrapping the Affordable Care Act, known as Obamacare.

Growing Consequences of Federal Closure

The effect on Americans from the lengthiest shutdown of the federal government in history worsened on Saturday, as government employees went without pay, carriers were forced to ground planes and SNAP benefits have been postponed for forty-two million Americans.

Trump's Plan from Golf Course

As weekend session got under way, GOP senators embraced a suggestion made on social media early Saturday by Donald Trump from his golf course in West Palm Beach, for government payments to be substituted by HSA-style 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.

Republican Support

Several Republican senators praised the plan, which is comparable with a alternative for Obamacare proposed in 2017.

"We're going to replace this failing program with something that is truly better for the patient," one senator stated.

Another senator commended Trump's suggestion on social media, and displayed a giant blow-up 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 proposal. "We must stop public funds from going to insurance companies and instead give it directly to Americans in HSA-style accounts and let them buy the health care they want."

Opposition Response

Opposition senators shared alarmed reactions to Trump's proposal.

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

Another senator responded to the criticism of carriers by posting: "Oh, Trump and the Republicans dislike how the big, bad insurance companies are ripping-off Americans. Really? Then I applaud your support for Medicare for All."

Ongoing Negotiations

The Senate went into recess without finding a resolution, but Senate Republican leaders have indicated an openness to an emerging proposal from a small group of centrist lawmakers to end the shutdown in exchange for a future vote on the Obamacare payments.

One Democratic senator, who is spearheading the negotiations among centrists, said that Democrats "need another path forward" after Republicans turned down an proposal to reopen the government and continue the payments for a year.

Another leading Democratic lawmaker continued in arguing that Republicans should agree to a 12-month continuation of the payments before discussing the long-term of the tax credits.

"Inaction is irresponsible because citizens will go into debt, people will become uninsured, people will get more ill," the senator stated in a Senate address. "That's what will happen if this Congress fails to act."

Political Dynamics

None of the Republican senators seemed to address the fact that consumers would still need to buy plans from the same insurance companies, or that Republican legislators need the support of eight Democrats to reopen the government, and the concept of repealing and substituting Obamacare with savings accounts is unlikely to earn a single Democratic vote.

Some analysts indicated that the essence of such a plan would eliminate the ACA's mandate that carriers cover individuals with existing health issues.

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

Abigail Barnes
Abigail Barnes

A financial analyst with 15 years of experience in UK markets, specializing in wealth growth strategies.