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

American senators are meeting during the weekend for the initial time since the government shutdown began more than a month ago, but hopes for a bipartisan agreement on how to end the standoff appeared to diminish as GOP senators floated a proposal toxic to Democrats: scrapping the ACA, known as Obamacare.

Deepening Impact of Federal Closure

The effect on US citizens from the lengthiest closure of the federal government in history worsened on Saturday, as federal workers went without pay, airlines were compelled to ground planes and Supplemental Nutrition Assistance Program benefits have been delayed for 42 million Americans.

President's Proposal from Golf Course

As Saturday's meeting got started, GOP senators embraced a proposal made on social media early Saturday by Donald Trump from his golf course in West Palm Beach, for government payments to be replaced by HSA-style accounts.

"I am recommending to Senate Republicans that the Billions of Dollars currently being sent to money sucking 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 Support

Several Republican senators welcomed the proposal, which is comparable with a replacement for Obamacare put forward in 2017.

"We're going to replace this failing program with something that is actually better for the consumer," one senator stated.

Another senator commended Trump's proposal on online platforms, and displayed a large print of Trump's post as he spoke on the Senate floor.

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

Opposition Response

Democratic lawmakers shared concerned responses to Trump's proposal.

"In other words, Donald Trump's 'proposal' for health care is another cynical attempt to repeal Obamacare," one Democratic senator commented. "This is the same failed Republican plan that's been rejected by the public and Congress."

Another senator reacted to the censure of insurance companies by posting: "Oh, Trump and the Republicans can't stand how the big, bad insurance companies are ripping-off Americans. Seriously? Then I welcome your support for Medicare for All."

Ongoing Talks

The Senate adjourned without reaching a resolution, but Senate Republican leaders have signaled an openness to an emerging plan from a handful of centrist lawmakers to end the closure in return for a later vote on the Obamacare subsidies.

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

Another leading Democratic lawmaker continued in arguing that Republicans should accept a 12-month continuation of the payments before negotiating the long-term of the subsidies.

"Inaction is derelict because citizens will go bankrupt, people will become uninsured, people will get more ill," the senator said in a floor speech. "That's what will happen if this Congress does nothing."

Political Situation

Not one of the Republican senators seemed to address the fact that patients would still need to buy plans from the same insurance companies, or that Republican lawmakers need the backing of eight Democrats to restart the government, and the idea of eliminating and substituting Obamacare with savings accounts is improbable to earn a single Democratic vote.

Several observers suggested that the core of such a proposal would remove the ACA's requirement that carriers cover individuals with existing health issues.

After his resort visit, Trump returned to his private club and reiterated on his demand that Republicans stop seeking compromise and try instead to repeal and replace Obamacare with a iteration of the proposal that failed to garner enough support in 2017.

Megan Calhoun
Megan Calhoun

A seasoned financial analyst with over 15 years of experience in investment banking and wealth management.