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

US lawmakers are working through the weekend for the initial time since the federal closure began over a month ago, but hopes for a bipartisan agreement on how to resolve the standoff appeared to diminish as Republican senators floated a plan unacceptable to Democrats: eliminating the Affordable Care Act, called Obamacare.

Deepening Consequences of Government Shutdown

The effect on US citizens from the lengthiest shutdown of the federal government in history deepened on Saturday, as government employees went without pay, carriers were compelled to ground planes and Supplemental Nutrition Assistance Program benefits have been delayed for forty-two million Americans.

Trump's Plan from Florida Resort

As weekend session got under way, GOP senators welcomed a suggestion made on online platforms early Saturday by Donald Trump from his golf course in West Palm Beach, for subsidies to be replaced by HSA-style accounts.

"My recommendation is to Senate Republicans that the 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 wrote.

Republican Endorsement

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

"We will replace this failing program 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 am drafting the bill right now," a third senator wrote in response to Trump's proposal. "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."

Opposition Response

Democratic senators shared concerned reactions to Trump's plan.

"In other words, Donald Trump's 'concept of a plan' for health care is another calculated attempt to repeal Obamacare," one Democratic senator stated. "This is the same failed Republican plan that's been defeated by the public and Congress."

Another senator reacted to the criticism of carriers by writing: "Well, Trump and the Republicans can't stand how the big, bad insurance companies are overcharging Americans. Seriously? In that case I welcome your support for universal healthcare."

Ongoing Talks

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

One Democratic senator, who is spearheading the negotiations among moderates, said that Democrats "require another path forward" after Republicans turned down an offer to reopen the government and continue the subsidies for a year.

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

"Inaction is derelict because people will go into debt, people will lose insurance, people will get more ill," the senator stated in a floor speech. "That is what will happen if this Congress does nothing."

Political Dynamics

Not one of the Republican senators seemed to grapple with the fact that consumers would still need to buy coverage from the same carriers, or that Republican lawmakers need the support of eight Democrats to reopen the government, and the concept of eliminating and replacing Obamacare with HSAs is unlikely to earn a solitary Democratic vote.

Some analysts suggested that the core of such a plan would remove the ACA's mandate that carriers cover patients with pre-existing conditions.

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 eliminate and replace Obamacare with a version of the plan that was unsuccessful to garner enough backing in 2017.

The writer

Michael Johnston

A seasoned financial analyst with over a decade of experience in investment banking and personal finance education.

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