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Senate GOP Embrace President's Call to Replace Obamacare

US lawmakers are meeting during the weekend for the initial time since the federal closure began more than a month ago, but hopes for a bipartisan agreement on how to resolve the standoff appeared to diminish as Republican senators proposed a proposal toxic to Democrats: eliminating the Affordable Care Act, called Obamacare.

Growing Consequences of Government Shutdown

The effect on US citizens from the longest closure of the US 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 postponed for 42 million Americans.

President's Proposal from Florida Resort

As Saturday's session got under way, Republican senators embraced a proposal made on social media 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 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 plan, which is similar to a replacement for Obamacare proposed in 2017.

"We're going to replace this broken system with something that is actually 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 am drafting the bill right now," a third senator wrote in reply to Trump's proposal. "We must 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."

Democratic Response

Democratic senators expressed alarmed responses to Trump's plan.

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

Another lawmaker responded to the censure of insurance companies by posting: "Well, Trump and the Republicans can't stand how the big, bad insurance companies are overcharging Americans. Really? In that case I applaud your support for universal healthcare."

Ongoing Talks

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

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

Another senior Democratic senator persisted in arguing that Republicans should accept a 12-month continuation of the subsidies before negotiating the future of the tax credits.

"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's what will happen if this Congress fails to act."

Political Dynamics

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 backing of several Democrats to reopen the government, and the idea of repealing and replacing Obamacare with HSAs is improbable to earn a single Democratic vote.

Several observers indicated that the core of such a proposal would eliminate the ACA's requirement that insurance companies cover patients with existing health issues.

After his resort visit, Trump returned to his residence and doubled down on his demand that Republicans stop seeking agreement and try instead to repeal and overhaul Obamacare with a iteration of the plan that failed to garner enough support in 2017.

MF
Written by

Matthew Flores

James Whitfield is a market analyst with 15 years of experience in UK market research and strategy.

Market Solutions UK

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