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Congressional Republicans Embrace Trump's Proposal to Replace Affordable Care Act

US 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 proposed a proposal unacceptable to Democrats: scrapping the ACA, called Obamacare.

Deepening Consequences of Government Shutdown

The effect on US citizens from the longest shutdown of the federal government in history worsened on Saturday, as federal workers went unpaid, carriers were compelled to cancel flights and Supplemental Nutrition Assistance Program benefits have been delayed for 42 million Americans.

Trump's Proposal from Florida Resort

As weekend session got under way, GOP senators welcomed a proposal made on social media early Saturday by Donald Trump from his golf course in West Palm Beach, for government payments to be substituted by HSA-style 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 posted.

GOP Support

Multiple Republican senators praised the proposal, which is similar to a replacement for Obamacare put forward in 2017.

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

Another senator praised Trump's suggestion on social media, and stood next to 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 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 Response

Democratic senators expressed concerned reactions 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. "It's the same failed Republican plan that's been defeated by the public and Congress."

Another lawmaker responded to the criticism of insurance companies by writing: "Oh, Trump and the Republicans dislike 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 went into recess without finding a resolution, but Senate Republican leaders have signaled an willingness to an emerging plan from a handful of moderate Democrats to end the shutdown in exchange for a later vote on the Obamacare payments.

One Democratic senator, who is spearheading the negotiations among moderates, said that Democrats "require another way ahead" after Republicans turned down an proposal to reopen the government and extend the subsidies for a year.

Another leading Democratic lawmaker continued in maintaining that Republicans should agree to a 12-month continuation of the payments before discussing the long-term of the tax credits.

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

Political Dynamics

None 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 reopen the government, and the idea of repealing and replacing Obamacare with HSAs is unlikely to earn a single Democratic vote.

Several observers suggested that the essence of such a proposal would remove the ACA's requirement that carriers cover individuals with pre-existing conditions.

After his resort visit, Trump returned to his private club and doubled down on his insistence that Republicans stop seeking compromise and try instead to eliminate and overhaul Obamacare with a version of the proposal that was unsuccessful to secure enough backing in 2017.

By

Sonya Hall

Maya Chen is a seasoned business strategist with over 15 years of experience in market analysis and corporate consulting.

Clear Spin Group

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