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Congressional Republicans Back President's Call to Replace Obamacare

American senators are working through the weekend for the first time since the federal closure began more than a month ago, but expectations for a cross-party deal on how to resolve the standoff appeared to recede as Republican senators proposed a proposal unacceptable to Democrats: scrapping the ACA, called Obamacare.

Deepening Consequences of Government Shutdown

The effect on Americans from the lengthiest closure of the US government in history worsened 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 Proposal from Florida Resort

As Saturday's session got started, Republican senators embraced a proposal made on online platforms early Saturday by Donald Trump from his resort in West Palm Beach, for government payments to be replaced by HSA-style accounts.

"My recommendation is to Senate Republicans that the Hundreds of Billions of Dollars currently being sent to profit-driven 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 praised the proposal, which is similar to a replacement for Obamacare put forward in 2017.

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

Another senator commended Trump's suggestion on online platforms, and stood next to 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 proposal. "We need to stop taxpayer money 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 Reaction

Opposition lawmakers expressed alarmed reactions to Trump's plan.

"Essentially, Donald Trump's 'proposal' for health care is 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 senator responded to the censure of carriers by writing: "Well, Trump and the Republicans dislike how the big, bad insurance companies are ripping-off Americans. Really? In that case I applaud your support for Medicare for All."

Ongoing Negotiations

The Senate adjourned without reaching a resolution, but Senate Republican leaders have indicated an openness to an emerging proposal from a small group of moderate Democrats to end the closure in return for a future vote on the Obamacare subsidies.

One Democratic senator, who is spearheading the talks among moderates, said that Democrats "need another path forward" after Republicans rejected an offer to restart the government and continue the payments for a year.

Another leading Democratic senator persisted in maintaining that Republicans should accept a 12-month continuation of the subsidies before negotiating the long-term of the subsidies.

"Doing nothing is irresponsible because people will go into debt, people will become uninsured, people will get more ill," the senator said in a floor speech. "That is what will happen if this Congress does nothing."

Political Situation

None of the Republican senators seemed to address the fact that consumers would still need to buy coverage from the same carriers, or that Republican legislators need the backing of eight Democrats to reopen the government, and the concept of eliminating and replacing Obamacare with savings accounts is unlikely to earn a single Democratic vote.

Some observers indicated that the essence of such a plan would eliminate the ACA's requirement that insurance companies cover individuals with existing health issues.

After his golf outing, 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 version of the proposal that failed to garner enough backing in 2017.

MG
The writer

Michelle Garcia

Elara Vance is a financial analyst with over a decade of experience in forex markets, specializing in risk management and technical analysis.

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