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Senate Republicans Embrace President's Call to Overhaul Obamacare

American lawmakers are meeting during the weekend for the first time since the federal closure began over a month ago, but expectations for a bipartisan agreement on how to resolve the standoff appeared to diminish as Republican senators floated a plan toxic to Democrats: eliminating the Affordable Care Act, called Obamacare.

Deepening Consequences of Government Shutdown

The impact on Americans from the longest closure of the US government in history worsened on Saturday, as federal workers went unpaid, carriers were compelled to cancel flights and SNAP benefits have been delayed for forty-two million Americans.

Trump's Proposal from Golf Course

As Saturday's meeting got started, Republican senators welcomed a suggestion made on social media early Saturday by Donald Trump from his golf course in West Palm Beach, for subsidies to be substituted by HSA-style accounts.

"I am recommending to Senate Republicans that the Hundreds of Billions of Dollars currently being sent to money sucking Insurance Companies in order to save the bad 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 praised the plan, which is comparable with a alternative for Obamacare proposed in 2017.

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

Another senator commended Trump's suggestion on social media, and stood next to a giant blow-up of Trump's post as he addressed on the Senate floor.

"I'm writing the bill right now," a third senator posted in response to Trump's suggestion. "We need to stop public funds from going to carriers and instead give it directly to Americans in health savings accounts and let them buy the health care they want."

Opposition Reaction

Opposition senators shared alarmed responses to Trump's plan.

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

Another senator responded to the censure of insurance companies by posting: "Well, Trump and the Republicans dislike how the large insurance companies are ripping-off Americans. Seriously? In that case I welcome your support for Medicare for All."

Continuing Talks

The Senate went into recess without finding a resolution, but Senate Republican leaders have indicated an willingness to an emerging proposal from a small group of centrist lawmakers to terminate the closure in return for a future vote on the ACA subsidies.

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

Another senior Democratic lawmaker persisted in arguing that Republicans should agree to a one-year extension of the subsidies before discussing the long-term of the tax credits.

"Inaction is derelict because people will go bankrupt, people will lose insurance, people will get sicker," the senator said in a Senate address. "That's what will happen if this Congress fails to act."

Political Situation

Not one of the Republican senators seemed to address the fact that consumers would still need to buy plans from the same insurance companies, or that Republican legislators need the support of several Democrats to restart the government, and the concept of repealing and substituting Obamacare with savings accounts is unlikely to earn a single Democratic vote.

Several observers indicated that the essence of such a proposal would remove the ACA's mandate that insurance companies cover individuals with pre-existing conditions.

After his golf outing, Trump went back to his private club and reiterated on his demand that Republicans stop seeking agreement and try instead to repeal and replace Obamacare with a version of the plan that failed to secure enough backing in 2017.

The writer

Sean Smith

Liam Chen is a financial analyst and writer specializing in personal finance and investment strategies.

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