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Congressional Republicans Embrace Trump's Proposal to Replace Obamacare

US lawmakers are working through the weekend for the first time since the government shutdown began over a month ago, but hopes for a cross-party deal on how to end the standoff appeared to recede as Republican senators floated a proposal unacceptable to Democrats: eliminating the ACA, known as Obamacare.

Growing Consequences of Federal Closure

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

Trump's Proposal from Golf Course

As Saturday's session got under way, GOP senators embraced a suggestion made on social media early Saturday by Donald Trump from his resort in West Palm Beach, for government payments 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

Several Republican senators praised the proposal, which is similar to a alternative for Obamacare proposed in 2017.

"We will replace this failing program with something that is actually better for the patient," one senator said.

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

"I'm writing the bill right now," a third senator wrote in reply to Trump's suggestion. "We must stop taxpayer money from going to insurance companies and instead give it straight to Americans in health savings accounts and let them buy the health care they want."

Opposition Reaction

Opposition lawmakers shared alarmed reactions to Trump's proposal.

"In other words, 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 defeated by voters and Congress."

Another lawmaker reacted to the criticism of insurance companies by posting: "Well, Trump and the Republicans can't stand how the big, bad insurance companies are overcharging Americans. Seriously? Then I applaud your support for universal healthcare."

Continuing Negotiations

The Senate went into recess without finding a resolution, but Senate Republican leaders have indicated an willingness to an emerging proposal from a handful of centrist lawmakers to end the closure in exchange for a future vote on the ACA payments.

One Democratic senator, who is spearheading the talks among moderates, said that Democrats "require another path forward" after Republicans rejected an proposal to restart the government and extend the subsidies for a year.

Another senior Democratic lawmaker continued in arguing that Republicans should agree to a one-year extension of the subsidies before negotiating the future of the tax credits.

"Inaction is irresponsible because citizens will go into debt, people will lose insurance, people will get more ill," the senator said in a Senate address. "That's what will happen if this Congress does nothing."

Political Situation

None of the Republican senators seemed to address the fact that patients would still need to buy plans from the same carriers, or that Republican lawmakers need the backing of eight Democrats to restart the government, and the idea of eliminating and substituting Obamacare with HSAs is unlikely to earn a solitary Democratic vote.

Several observers suggested that the core of such a proposal would eliminate the ACA's requirement that carriers cover patients with pre-existing conditions.

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

Written by

Lindsey Moore

A seasoned international business strategist with over 15 years of experience advising Fortune 500 companies on global expansion.

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