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Senate GOP Back Trump's Call to Overhaul Affordable Care Act

US lawmakers are meeting during the weekend for the initial time since the government shutdown began more than a month ago, but expectations for a bipartisan agreement on how to end the impasse appeared to recede as Republican senators proposed a plan toxic to Democrats: eliminating the Affordable Care Act, known as Obamacare.

Growing Impact of Government Shutdown

The impact on US citizens from the lengthiest closure of the federal government in history deepened on Saturday, as government employees went unpaid, carriers were forced to cancel flights and SNAP benefits have been postponed for 42 million Americans.

President's Proposal from Golf Course

As weekend session got started, GOP senators welcomed a proposal made on social media early Saturday by Donald Trump from his golf course in West Palm Beach, for subsidies to be replaced by health savings 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 Endorsement

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 suggestion on social media, and displayed a large print of Trump's post as he spoke on the Senate floor.

"I am drafting the bill right now," a third senator wrote in response to Trump's proposal. "We must stop taxpayer money from going to insurance companies and instead give it straight to Americans in HSA-style accounts and let them buy the medical coverage they want."

Democratic Reaction

Democratic lawmakers shared alarmed responses to Trump's proposal.

"Essentially, Donald Trump's 'proposal' for health care is another calculated attempt to eliminate Obamacare," one Democratic senator commented. "This is the same unsuccessful Republican plan that's been defeated by the public and Congress."

Another senator reacted to the criticism of insurance companies by writing: "Well, Trump and the Republicans dislike how the large insurance companies are overcharging Americans. Really? Then I welcome your support for Medicare for All."

Ongoing Talks

The Senate went into recess without finding a solution, but Senate Republican leaders have indicated an openness to an emerging proposal from a handful of centrist lawmakers to end the shutdown in return for a future vote on the ACA subsidies.

One Democratic senator, who is spearheading the talks among centrists, said that Democrats "require another path forward" after Republicans turned down an offer to restart the government and extend the payments for a year.

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

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

Partisan Situation

Not one of the Republican senators seemed to grapple with the fact that patients 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 substituting Obamacare with HSAs is unlikely to earn a solitary Democratic vote.

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

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

Written by

Sandra Davis

A financial journalist with over a decade of experience covering European markets and economic policy.

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