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Senate GOP Back Trump's Proposal to Replace Obamacare

US lawmakers are working through the weekend for the first time since the federal closure began more than a month ago, but hopes for a bipartisan agreement on how to resolve the impasse appeared to recede as Republican senators floated a proposal unacceptable to Democrats: scrapping the Affordable Care Act, called Obamacare.

Deepening Impact of Federal Closure

The effect on Americans from the lengthiest closure of the federal government in history worsened on Saturday, as government employees went without pay, airlines were compelled to ground planes and SNAP benefits have been delayed for forty-two million Americans.

President's Proposal 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 replaced by health savings 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 welcomed the proposal, which is comparable with a replacement for Obamacare put forward in 2017.

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

Another senator praised Trump's proposal on social media, and stood next to a large print of Trump's post as he spoke on the Senate floor.

"I'm writing the bill right now," a third senator wrote in response to Trump's proposal. "We need to stop public funds from going to carriers and instead give it straight to Americans in HSA-style accounts and let them buy the medical coverage they want."

Opposition Reaction

Opposition senators expressed alarmed reactions to Trump's proposal.

"Essentially, Donald Trump's 'concept of a plan' for health care is another cynical attempt to repeal Obamacare," one Democratic senator commented. "It's the same failed Republican plan that's been rejected by voters and Congress."

Another senator reacted to the censure of insurance companies by writing: "Oh, Trump and the Republicans can't stand how the big, bad insurance companies are overcharging Americans. Seriously? In that case I welcome your support for Medicare for All."

Continuing Negotiations

The Senate adjourned without finding a resolution, but Senate Republican leaders have indicated an openness to an developing proposal from a handful of moderate Democrats to end the shutdown in return for a later vote on the ACA subsidies.

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

Another leading Democratic senator persisted in arguing that Republicans should agree to a 12-month continuation of the subsidies before discussing the long-term of the tax credits.

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

Partisan Dynamics

None of the Republican senators seemed to grapple with 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 concept of eliminating and replacing Obamacare with HSAs is unlikely to earn a single Democratic vote.

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

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

Written by

Emily Castillo

A financial analyst with over a decade of experience in credit card optimization and personal finance strategies.

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