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Congressional Republicans Back President's Proposal to Overhaul Obamacare

US senators are meeting during 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 end the impasse appeared to diminish as Republican senators proposed a plan unacceptable to Democrats: eliminating the Affordable Care Act, called Obamacare.

Deepening Impact of Government Shutdown

The impact on US citizens from the lengthiest closure of the federal government in history worsened on Saturday, as government employees went unpaid, carriers were forced to ground planes and Supplemental Nutrition Assistance Program benefits have been delayed for forty-two million Americans.

President's Plan from Golf Course

As weekend meeting got under way, Republican senators welcomed a suggestion made on online platforms early Saturday by Donald Trump from his golf course in West Palm Beach, for government payments to be replaced by health savings accounts.

"I am recommending 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.

GOP Endorsement

Multiple Republican senators praised the proposal, which is comparable with a alternative for Obamacare proposed in 2017.

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

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

"I am drafting the bill right now," a third senator posted in response to Trump's proposal. "We need to stop public funds from going to insurance companies and instead give it straight to Americans in HSA-style accounts and let them buy the health care they want."

Opposition Response

Democratic senators shared alarmed responses to Trump's plan.

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

Another lawmaker reacted to the criticism of carriers by writing: "Well, Trump and the Republicans dislike how the big, bad insurance companies are ripping-off Americans. Really? Then I welcome your support for Medicare for All."

Continuing Talks

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 terminate the shutdown in return for a future vote on the ACA payments.

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

Another senior 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 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 does nothing."

Political Situation

None of the Republican senators seemed to grapple with the fact that consumers would still need to buy coverage from the same insurance companies, or that Republican legislators need the backing of eight Democrats to restart the government, and the idea of eliminating and replacing Obamacare with savings accounts is improbable to earn a solitary Democratic vote.

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

After his resort visit, Trump went back to his private club and reiterated on his demand that Republicans stop seeking agreement and try instead to eliminate and overhaul Obamacare with a iteration of the plan that failed to secure enough support in 2017.

About the author

Heather Richardson

Elena is a seasoned financial analyst with over a decade of experience in global markets, specializing in emerging economies and tech investments.

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