Senate Republicans Embrace Trump's Call to Replace Affordable Care Act

American senators are working through the weekend for the initial time since the government shutdown began over a month ago, but hopes for a bipartisan agreement on how to resolve the impasse appeared to recede as Republican senators proposed a plan unacceptable to Democrats: scrapping the ACA, called Obamacare.

Deepening Impact of Federal Closure

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

Trump's Plan from Florida Resort

As weekend session got started, Republican senators embraced a suggestion made on online platforms early Saturday by Donald Trump from his resort in West Palm Beach, for government payments to be substituted by health savings 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.

Republican Endorsement

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

"We will replace this failing program with something that is actually better for the consumer," one senator said.

Another senator praised Trump's proposal 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 posted in response to Trump's proposal. "We need to stop public funds from going to insurance companies and instead give it straight to Americans in health savings accounts and let them buy the health care they want."

Democratic Reaction

Opposition lawmakers shared concerned responses to Trump's plan.

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

Another lawmaker reacted to the criticism of carriers by writing: "Oh, Trump and the Republicans can't stand how the large insurance companies are overcharging Americans. Seriously? Then I applaud your support for Medicare for All."

Continuing Negotiations

The Senate went into recess without finding a solution, but Senate Republican leaders have signaled an willingness to an emerging plan from a small group of moderate Democrats to end the shutdown in return for a future vote on the ACA payments.

One Democratic senator, who is leading the negotiations among centrists, said that Democrats "need another path forward" after Republicans rejected an offer to restart the government and extend the subsidies for a year.

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

"Doing nothing is irresponsible because citizens will go bankrupt, people will become uninsured, people will get sicker," the senator said in a Senate address. "That is what will happen if this Congress does nothing."

Partisan Situation

Not one of the Republican senators seemed to address the fact that patients would still need to buy coverage from the same carriers, or that Republican lawmakers need the support of eight Democrats to restart the government, and the idea of eliminating and replacing Obamacare with HSAs is unlikely to earn a single Democratic vote.

Some analysts suggested that the essence of such a proposal would remove the ACA's requirement that insurance companies cover individuals 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 version of the proposal that failed to secure enough support in 2017.

Rebecca Davis
Rebecca Davis

Elara Vance is a financial analyst with over a decade of experience in global markets, specializing in emerging economies and sustainable investments.

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