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Congressional GOP Embrace Trump's Proposal to Overhaul Obamacare

US senators are meeting during the weekend for the first time since the federal closure began over a month ago, but hopes for a cross-party deal on how to end the standoff appeared to recede as Republican senators proposed a proposal unacceptable to Democrats: eliminating the Affordable Care Act, known as Obamacare.

Growing Consequences of Government Shutdown

The impact on Americans from the lengthiest shutdown of the federal government in history deepened on Saturday, as federal workers went without pay, carriers were compelled 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 meeting got started, GOP senators welcomed 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 health savings accounts.

"I am recommending to Senate Republicans that the Billions of Dollars currently being sent to money sucking Insurance Companies in order to save the bad 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 welcomed the plan, which is comparable with a alternative for Obamacare proposed in 2017.

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

Another senator commended Trump's suggestion on online platforms, and stood next to 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 suggestion. "We need to stop public funds from going to carriers and instead give it directly to Americans in health savings accounts and let them buy the health care they want."

Opposition Response

Democratic senators shared alarmed reactions to Trump's proposal.

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

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

Continuing Negotiations

The Senate adjourned without finding a resolution, but Senate Republican leaders have indicated an openness to an emerging plan from a handful of centrist lawmakers to terminate the shutdown in return for a future vote on the Obamacare payments.

One Democratic senator, who is spearheading the talks among centrists, said that Democrats "require another way ahead" after Republicans turned down an offer to restart the government and continue the subsidies for a year.

Another leading Democratic senator persisted in maintaining that Republicans should accept a 12-month continuation of the payments before discussing the future of the tax credits.

"Inaction is irresponsible because citizens will go into debt, 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

Not one 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 backing of eight Democrats to restart the government, and the concept of eliminating and replacing Obamacare with savings accounts is improbable to earn a single Democratic vote.

Some observers suggested that the core of such a proposal would eliminate the ACA's requirement that insurance companies cover patients with pre-existing conditions.

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

The writer

James Hawkins

Erik Lundqvist is a seasoned financial analyst with over 15 years of experience in market research and portfolio management.

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