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Congressional GOP Support Trump's Proposal to Overhaul Affordable Care Act

US lawmakers are working through the weekend for the first time since the government shutdown began more than a month ago, but expectations for a cross-party deal on how to end the impasse appeared to recede as GOP senators floated a proposal unacceptable to Democrats: eliminating the ACA, called Obamacare.

Deepening Consequences of Federal Closure

The effect on US citizens from the lengthiest closure of the federal government in history worsened on Saturday, as federal workers went unpaid, airlines were forced to ground planes and SNAP benefits have been postponed for 42 million Americans.

Trump's Plan from Florida Resort

As weekend meeting 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 government payments to be replaced by HSA-style 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 plan, which is similar to a alternative for Obamacare put forward in 2017.

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

Another senator commended Trump's suggestion on online platforms, 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 posted in reply to Trump's proposal. "We need to stop public funds from going to carriers and instead give it straight to Americans in HSA-style accounts and let them buy the health care they want."

Democratic Reaction

Opposition lawmakers shared concerned responses to Trump's plan.

"Essentially, Donald Trump's 'proposal' for health care is yet another calculated attempt to eliminate Obamacare," one Democratic senator commented. "This is the same unsuccessful Republican plan that's been rejected by voters and Congress."

Another senator responded to the censure of carriers by writing: "Oh, Trump and the Republicans can't stand how the big, bad insurance companies are ripping-off Americans. Really? In that case I welcome your support for universal healthcare."

Ongoing Negotiations

The Senate went into recess without reaching a resolution, but Senate Republican leaders have indicated an willingness to an emerging plan from a small group of moderate Democrats to terminate the shutdown in exchange for a later vote on the Obamacare payments.

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

Another senior Democratic lawmaker continued in arguing that Republicans should agree to a 12-month continuation of the payments before negotiating the future of the tax credits.

"Doing nothing is irresponsible because citizens will go bankrupt, people will lose insurance, people will get sicker," the senator said in a Senate address. "That is what will happen if this Congress fails to act."

Partisan Situation

Not one of the Republican senators seemed to address the fact that consumers would still need to buy coverage from the same insurance companies, or that Republican lawmakers need the support of eight Democrats to reopen the government, and the idea of eliminating and substituting Obamacare with savings accounts is unlikely to earn a solitary Democratic vote.

Several analysts indicated that the essence of such a proposal would eliminate the ACA's requirement that carriers cover patients with pre-existing conditions.

After his resort visit, Trump returned to his private club and doubled down on his demand that Republicans stop seeking agreement and try instead to eliminate and overhaul Obamacare with a version of the proposal that failed to secure enough backing in 2017.

DW
Written by

Danielle Wise

A financial analyst specializing in precious metals with over 15 years of experience in global markets and portfolio diversification.

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