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Washington Post Report: Latest Example of GOP’s Health Care Winners and Losers

The Washington Post recently reported that “health industry giants get tax windfall” in a story about all the way big health insurance companies are benefiting from massive tax breaks in the TrumpTax.

Health industry giants get tax windfall. But it’s unclear how it will be used.

Washington Post // Paige Winfield Cunningham // April 18, 2018

[…] “One thing is for sure, however: the tax overhaul certainly unlocked more profits for the industry. It not only lowered the domestic corporate tax rate from 35 percent to 21 percent, a huge boon to insurers and pharmacy benefit managers, but it also enticed drug and biotech companies to bring home huge overseas cash reserves by slashing taxes on those earnings, too.

“Pfizer, which has been mentioned as a potential buyer of Shire, announced an extra $10.7 billion in reported income for 2017 because of the tax changes. Allergan, UnitedHealth and Anthem have also recorded a benefit from the tax overhaul, according to a recent analysis by Bloomberg.

“Indeed, all five major U.S. health insurers have announced the tax overhaul will increase their revenue this year.”

But, for people who work for a living, the TrumpTax means higher health care costs.

The nonpartisan Congressional Budget Office says that the premiums will go up 10% each year because of the TrumpTax.
A recent Urban Institute Urban study found that premiums are expected to rise 18.3% due to actions taken by the Trump Administration.
And an analysis from by Covered California projected that premiums could rise as much as 90% due to the Trump Administration’s sabotage campaign.

“Analysis after analysis and report after report all show the same thing: big pharmaceutical companies and health insurance companies are putting these tax breaks into their pockets while picking the pockets of working people through higher health care costs. This analysis only further underscores the most basic and predictable result of the TrumpTax: America’s largest health corporations are seeing huge profits while continuing to raise Americans’ health care costs,” said Brad Woodhouse, Protect Our Care Campaign Director.

ashoup In News, Administration

Trump’s Tax Day: Tax Breaks For the Rich, Higher Health Care Costs For You

Washington, D.C. – On Tax Day, as millions of Americans contend with health care premiums expected to increase an average of 18 percent, Protect Our Care Campaign Director Brad Woodhouse released the following statement:

“This Tax Day, wealthy health insurers and rich pharmaceutical companies get huge tax breaks thanks to Donald Trump and Congressional Republicans. Meanwhile, people who work for a living get higher health care costs.

“The TrumpTax will take health insurance away from 13 million people and raise premiums double-digits each year for millions more to fund a trillion-dollar tax break for the wealthiest individuals and corporations. 20 Americans will lose their coverage for each millionaire’s tax break.

“Every American who sees their health care costs go up should remember this Tax Day that their rising health care costs were brought to them courtesy of Donald Trump and the GOP.”

ashoup In Administration, News

“Premiums Could Increase 90 Percent”: The Trump Administration’s Effect on Future Premiums By the Headlines

Yesterday, Covered California released an analysis outlining the future of the individual market under the Trump Administration and its constant barrage of sabotage. Its findings were striking:

All states’ individual markets risk higher than normal premium increases — ranging from 35 to 90 percent over three years — due to continued uncertainty at the federal level.
Premium increases in the individual markets will likely range from 12 to 32 percent in 2019, and cumulative increases from 2019-2021 will range from 35 percent to more than 90 percent.
Increases are on average more than double the rate of medical inflation as a result of healthier consumers leaving the individual market.
17 states are more likely — because of their historic risk mix and enrollment — to have cumulative premium increases of 90 percent or more and 19 additional states are at a higher risk of experiencing hikes of 50 percent.

All in all, the report makes clear in no uncertain terms just how much the repeal and sabotage campaign being carried out by the Trump Administration and its Republican allies in Congress is harming Americans. Here’s how the report was covered in headlines:

Washington Post: Premiums for ACA health insurance plans could jump 90 percent in three years

The Hill: Study: ObamaCare premiums could increase 90 percent over three years for some states

Insurance Business Magazine: Report: States could see average health premium increases up to 30%

Salon: Health care premiums set to spike highest in Trump country

San Francisco Chronicle: California health insurance premiums could soar, analysis projects

Berkshire Eagle: Premiums for plans could jump 90% in 3 years

Stamford Advocate: Study: Connecticut premiums could rise 35 percent

CT Post: Study: Connecticut premiums could rise 35 percent

KCRA: California health care exchange head says rates to increase

ashoup In News, Administration

Trump’s Own Budget Experts Admit His Sabotage Inflated Premiums

Washington, D.C. – According to new reporting, President Trump’s own Office of Management and Budget has found that restoring the cost-sharing reduction payments (CSRs) that Trump unilaterally canceled last fall would lower premiums 15-20%. Protect Our Care Campaign Director Brad Woodhouse released the following statement in response:

“Donald Trump’s unilateral decision to end cost-sharing reduction payments triggered a massive and unnecessary increase in premiums. Now, Trump’s own Administration is admitting the damage that he caused. Once again, President Trump has slipped on a banana peel he threw on the floor himself. But Trump’s CSR sabotage was only the first strike in a deluge of Administration actions to damage and destabilize the health markets and drive up costs, and addressing the CSR issue alone is not sufficient to mitigate the harm ensuring Trump Administration sabotage actions are now set to drive up premiums by double digits again next year. That’s why any stabilization package worth its weight must match the scope of the damage inflicted by Trump and his Administration.”

OMB: Funding insurer subsidies will lower ACA premiums 15-20%

Axios // Caitlin Owens and Jonathan Swan // March 6, 2018

Funding the Affordable Care Act’s cost-sharing subsidies would lower premiums by 15-20%, according to an analysis being circulated around congressional offices from the Office of Management and Budget. OMB says those subsidies would be more cost-effective than a new reinsurance program.

Why it matters:

Reinsurance has been gaining steam on Capitol Hill, and Sen. Susan Collins is still owed a vote on a reinsurance bill. But the White House budget office is saying Congress could get a better deal by restoring a funding stream that President Trump cut off last year.

The numbers:

President Trump’s decision to quit making the cost-sharing payments this year caused premiums to rise by 15-20%, the analysis says, and funding them next year would undo that increase.
It also says that for every $1 billion spent on a reinsurance program — which would compensate insurers for their most expensive claims — individual market premiums would decrease by only 1%.

Key quote:

“We project funding CSRs would have a greater impact on reducing premiums than any of the reinsurance funding levels that have been proposed, and would have more bang for the buck in terms of Federal spending.”

ashoup In News, Administration

Second Study Confirms Trump Health Care Proposals A Disaster

Today, Avalere released a new study finding that the Trump Administration’s proposed Association Health Plans rule will increase premiums in the individual marketplace as much as 4% while reducing the enrollment in Affordable Care Act plans by 3 million. Protect Our Care Campaign Director Brad Woodhouse released the following statement in response:

“This is the second study in three days to conclude that the sabotage agenda being pushed by Donald Trump and his Administration will have massive negative consequences on Americans’ care,” said Woodhouse. “People will lose their coverage, premiums will rise across the board, and the marketplace will become even more jumbled, all while the Administration sits back and continues to play political games. It’s time for President Trump and Congressional Republicans to work with Democrats on real solutions to expand access and bring down costs for Americans rather than continuing to push their partisan sabotage efforts. Enough is enough – it’s time for the Trump Administration and Republicans in Congress to end their war on health care.”

ashoup In Administration, News

“Trump Will Drive Up Obamacare Premiums Nearly 20%”: Today’s Health Care Sabotage Headlines

This morning, the Urban Institute published a bombshell study outlining the the high price Americans will pay for Republican health care sabotage, which is set to artificially inflate premiums by double digits for millions of families this fall. The study forecasts an 18.2% increase in 2019 premiums for Affordable Care Act plans and millions of Americans losing their coverage. Here’s a roundup of today’s headlines:

Vox: Trump will drive up Obamacare premiums nearly 20%

Bloomberg: Trump’s Obamacare Changes to Push Up Premiums, Report Projects

Mic: Obamacare premiums could see double-digit increases thanks to Trump’s changes

CNN: 9 million fewer Americans expected to have health insurance in 2019

Axios: Millions of Americans won’t have health insurance next year

Huffington Post: These Are The Real-Life Effects Of Trump’s Obamacare Sabotage

The Hill: ObamaCare premiums to rise 18 percent from GOP-backed changes