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Senate Republicans Support Trump's Proposal to Overhaul Obamacare

American 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 diminish as GOP senators proposed a plan toxic to Democrats: scrapping the Affordable Care Act, called Obamacare.

Growing Consequences of Federal Closure

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

President's Plan from Florida Resort

As Saturday's session got under way, Republican senators welcomed a proposal made on social media early Saturday by Donald Trump from his resort in West Palm Beach, for subsidies to be substituted 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.

Republican Endorsement

Multiple Republican senators praised the proposal, which is comparable with a replacement for Obamacare put forward in 2017.

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

Another senator praised Trump's proposal on online platforms, and displayed a giant blow-up of Trump's post as he spoke on the Senate floor.

"I am drafting the bill right now," a third senator posted in reply to Trump's suggestion. "We need to stop taxpayer money 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 Response

Opposition lawmakers shared concerned responses to Trump's proposal.

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

Another lawmaker responded to the criticism of carriers by posting: "Oh, Trump and the Republicans can't stand how the large insurance companies are overcharging Americans. Seriously? In that case I welcome your support for Medicare for All."

Continuing Talks

The Senate adjourned without reaching a solution, but Senate Republican leaders have indicated an openness to an developing plan from a handful of centrist lawmakers to end the shutdown in return for a later vote on the Obamacare payments.

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

Another leading Democratic lawmaker persisted in arguing that Republicans should agree to a 12-month continuation of the subsidies before negotiating the future of the subsidies.

"Doing nothing is irresponsible because people will go bankrupt, people will lose insurance, people will get more ill," the senator stated in a Senate address. "That's what will happen if this Congress fails to act."

Partisan Situation

Not one of the Republican senators seemed to grapple with the fact that consumers would still need to buy plans from the same carriers, or that Republican legislators need the support of several Democrats to reopen the government, and the idea of repealing 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 went back to his private club and doubled down on his demand that Republicans stop seeking compromise and try instead to repeal and replace Obamacare with a iteration of the proposal that failed to secure enough support in 2017.

By

Daniel Villanueva

Financial analyst specializing in precious metals with over a decade of market experience.

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