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Congressional GOP Embrace President's Call to Replace Obamacare

American senators are working through the weekend for the initial time since the government shutdown began over a month ago, but expectations for a bipartisan agreement on how to resolve the impasse appeared to recede as Republican senators floated a plan toxic to Democrats: eliminating the Affordable Care Act, called Obamacare.

Deepening Impact of Federal Closure

The effect on Americans from the lengthiest shutdown of the federal government in history worsened on Saturday, as government employees went unpaid, airlines were forced to ground planes and Supplemental Nutrition Assistance Program benefits have been delayed for 42 million Americans.

Trump's Plan from Florida Resort

As weekend session got under way, GOP senators welcomed a suggestion made on online platforms early Saturday by Donald Trump from his golf course in West Palm Beach, for subsidies to be replaced 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 bad Healthcare provided by ObamaCare, BE SENT DIRECTLY TO THE PEOPLE SO THAT THEY CAN PURCHASE THEIR OWN, MUCH BETTER, HEALTHCARE," Trump posted.

GOP Support

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

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

Another senator praised Trump's proposal on social media, and displayed a giant blow-up 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 suggestion. "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."

Democratic Reaction

Democratic senators expressed concerned reactions to Trump's proposal.

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

Another lawmaker reacted to the censure of insurance companies by posting: "Well, Trump and the Republicans dislike how the large insurance companies are overcharging Americans. Seriously? In that case I welcome your support for universal healthcare."

Ongoing Talks

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

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

Another senior Democratic senator persisted in maintaining that Republicans should agree to a one-year extension of the subsidies before negotiating the future of the subsidies.

"Inaction is irresponsible because people will go bankrupt, people will become uninsured, people will get sicker," 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 grapple with the fact that consumers would still need to buy coverage from the same carriers, or that Republican legislators need the support of eight Democrats to restart the government, and the idea of repealing and replacing Obamacare with HSAs is improbable to earn a single Democratic vote.

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

After his golf outing, Trump returned to his residence and doubled down on his demand that Republicans stop seeking compromise and try instead to eliminate and replace Obamacare with a version of the plan that failed to secure enough backing in 2017.

MP
By

Michael Pham

Financial analyst specializing in precious metals markets with over 15 years of experience in investment strategy.

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