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Senate Republicans Back Trump's Proposal to Overhaul Affordable Care Act

US senators are working through the weekend for the initial time since the government shutdown began more than a month ago, but expectations for a bipartisan agreement on how to resolve the impasse appeared to diminish as GOP senators floated a plan toxic to Democrats: eliminating the ACA, called Obamacare.

Deepening Impact of Federal Closure

The effect on Americans from the longest shutdown of the federal government in history worsened on Saturday, as federal workers went unpaid, airlines were compelled to cancel flights and Supplemental Nutrition Assistance Program benefits have been delayed for forty-two million Americans.

President's Plan from Golf Course

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

"I am recommending to Senate Republicans that the 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 posted.

GOP Endorsement

Several Republican senators welcomed the plan, which is similar to a replacement for Obamacare put forward in 2017.

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

Another senator praised Trump's proposal on online platforms, and displayed 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 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

Democratic senators shared alarmed reactions to Trump's proposal.

"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 rejected by the public and Congress."

Another lawmaker reacted to the censure of insurance companies by writing: "Oh, Trump and the Republicans can't stand how the large insurance companies are ripping-off Americans. Seriously? Then I applaud your support for universal healthcare."

Ongoing Negotiations

The Senate went into recess without reaching a solution, but Senate Republican leaders have signaled an openness to an developing proposal from a handful of centrist lawmakers to end the shutdown in return for a future vote on the Obamacare payments.

One Democratic senator, who is leading the negotiations among centrists, said that Democrats "require another way ahead" after Republicans rejected an offer to restart the government and continue the payments for a year.

Another senior Democratic lawmaker persisted in maintaining that Republicans should agree to a 12-month continuation of the payments before negotiating the long-term of the subsidies.

"Inaction is irresponsible because people will go into debt, people will become uninsured, people will get sicker," the senator stated in a Senate address. "That's what will happen if this Congress fails to act."

Political Situation

None of the Republican senators seemed to address the fact that patients would still need to buy coverage from the same insurance companies, or that Republican lawmakers need the backing of eight Democrats to restart the government, and the concept of repealing and substituting Obamacare with savings accounts is improbable to earn a single Democratic vote.

Several analysts indicated that the essence of such a proposal would eliminate the ACA's mandate that carriers cover individuals with pre-existing conditions.

After his golf outing, Trump returned to his private club and reiterated on his demand that Republicans stop seeking agreement and try instead to eliminate and overhaul Obamacare with a version of the plan that failed to secure enough support in 2017.

MA
By

Matthew Avila

A financial analyst specializing in precious metals markets with over 15 years of experience in investment strategies.

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