Congressional Republicans Support President's Proposal to Replace Affordable Care Act

US lawmakers are meeting during the weekend for the first time since the federal closure began more than a month ago, but hopes for a cross-party deal on how to end the impasse appeared to diminish as GOP senators floated a plan toxic to Democrats: scrapping the ACA, called Obamacare.

Deepening Impact of Federal Closure

The impact on Americans from the longest shutdown of the US government in history deepened on Saturday, as federal workers went without pay, airlines were compelled to cancel flights and SNAP benefits have been postponed for 42 million Americans.

President's Proposal from Florida Resort

As Saturday's session got under way, Republican senators embraced a proposal 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 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.

Republican Endorsement

Multiple Republican senators praised the proposal, which is similar to a replacement 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 said.

Another senator praised Trump's suggestion on social media, and displayed a giant blow-up 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 must stop public funds from going to insurance companies and instead give it directly to Americans in HSA-style accounts and let them buy the health care they want."

Democratic Reaction

Opposition lawmakers expressed concerned reactions to Trump's plan.

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

Another lawmaker responded to the criticism of insurance companies by posting: "Oh, Trump and the Republicans can't stand how the large insurance companies are ripping-off Americans. Really? Then I welcome your support for Medicare for All."

Continuing Negotiations

The Senate went into recess without finding a solution, but Senate Republican leaders have signaled an willingness to an developing plan from a small group of moderate Democrats to end the shutdown in return for a future vote on the ACA subsidies.

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

Another senior Democratic lawmaker persisted in maintaining that Republicans should accept a one-year extension of the payments before discussing 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 is what will happen if this Congress fails to act."

Partisan Situation

Not one of the Republican senators seemed to address 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 reopen the government, and the idea of repealing and substituting Obamacare with savings accounts is unlikely to earn a single Democratic vote.

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

After his golf outing, Trump went back to his residence 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 support in 2017.

Christopher Flores
Christopher Flores

Financial blogger with 10+ years in personal finance, helping readers achieve financial independence.