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protectourcare
In Capitol Hill, News

Here We Go Again: House Republicans Target Health Care for More Tax Cuts For The Rich

Washington, D.C. –  As reported today in the Wall Street Journal, House Republicans are once again preparing to give hundreds of millions of dollars in tax breaks to drug and health insurance companies and ignoring the clear message from the midterms to end the GOP war on health care. Leslie Dach, chair of Protect Our Care, issued the following statement in response:

“Voters sent a clear message in the 2018 elections — end the GOP war on health care and stop attacking protections for pre-existing conditions. But instead of listening to their constituents, this latest GOP proposal is just another massive tax break for large drug and health insurance companies.  While their profits and CEO compensation soars, Americans pay more for their drugs and health care premiums. Make no mistake, Americans are fed up with the relentless Republican sabotage campaign and their ongoing support for President Trump’s effort in the courts to declare protections for pre-existing conditions unconstitutional.”

 

BACKGROUND:

Last December, Congressional Republicans Used The Tax Bill As A Vehicle To Sabotage The Affordable Care Act. By using the tax bill to repeal the requirement that most people have insurance, it Republicans are expected to increase the number of uninsured Americans by 12 million. In 2021, the repeal of the individual mandate is expected to save $30.6 billion from health care cuts, savings resulting from 12 million Americans losing health insurance. In that same year, the tax cuts for millionaires total $29.8 billion.

Drug Companies Are Reaping The Benefits Of Republicans’ Last Tax Bill While Americans Pay More. The health industry brought in $51.8 billion in profit during the third quarter — approximately 63 percent of which went to drug companies. Of 19 companies in the health industry that amassed at least $1 billion in third-quarter profit, 14 were drug companies. Axios reports that “Drug firm AbbVie paid $14 million of income taxes on $2.76 billion of pre-tax earnings in the third quarter — an effective tax rate of just 0.5%. Pfizer’s effective tax rate in Q3 was 1.6%.” These astronomical earnings come during a year during the first seven months of which there were 96 price hikes for every price cut.

protectourcare
In Capitol Hill, News

House Republicans Pass More Tax Cuts for the Rich

“What this bill really means is more Republican health care cuts for the rest of us, and the American people are sick of it,” says Brad Woodhouse

Washington, DC – Today House Republicans passed a second set of tax cuts to benefit the wealthiest Americans and big corporations at the expense of working families. Their tax cuts have led to trillion dollar deficits, which Republicans are now using as an excuse to go after Social Security, Medicare and Medicaid. Brad Woodhouse, executive director of Protect Our Care, issued the following statement in response:

“What this bill really means is more Republican health care cuts for the rest of us, and the American people are sick of it. Since Paul Ryan and his allies have repeatedly made it plain that they will pay for these tax breaks for the wealthy by making deep cuts to Medicare and Medicaid, today’s vote calcifies the damage Republicans are doing to America’s working families and seniors all so they can give handouts to wealthiest. Thankfully, Americans see right through this Republican tax scam and are ready to give it a giant thumbs down at the polls in November.”

 

ADDITIONAL BACKGROUND:

President Trump and Congressional Republicans are targeting Medicaid and Medicare to pay for their tax cuts to the wealthy. Earlier this month, Larry Kudlow, Director of the National Economic Council, confirmed that they still have their sights set on Americans’ care. Asked when programs like Social Security and Medicare will be looked at for reforms, Kudlow replied, “Everyone will look at that — probably next year.” And last December, when President Trump signed the first round of $1.5 trillion tax bill that disproportionately benefits the wealthy, Speaker Paul Ryan made it clear they would cut programs like Medicaid that support working families. “Frankly, it’s the health care entitlements that are the big drivers of our debt.” Since that time:

Following Massive GOP Tax Cuts, Administration Predicts Medicare Trust Fund Will Be Depleted In 8 Years. “The financial outlook for Medicare’s Hospital Insurance Trust Fund deteriorated in the last year, and Social Security still faces serious long-term financial problems, the Trump administration said on Tuesday. The projections are the first from the administration since President Trump signed a $1.5 trillion tax cut into law in December. They show no sign that a burst of economic growth will significantly improve the finances of the government’s largest entitlement programs. The Medicare trust fund will be depleted in 2026, the administration said. By contrast, the government said last year that the trust fund would be exhausted in 2029.” [New York Times, 6/5/18]

ashoup
In Capitol Hill, Administration, News

Five Ways the Trump Administration is Dismantling Medicaid and Medicare

Today marks the 53rd anniversary of Medicaid and Medicare, two crucial health programs that serve as a lifeline to more than one-third of Americans. Despite the essential health care services these programs provide 125 million people, President Trump and Congressional Republicans have worked to dismantle Medicaid and Medicare. Here’s how:

  1. As the cost of drugs skyrocket, President Trump and his Republican allies in Congress will not allow Medicare to negotiate for better prescription drug prices. Under current law, the Secretary of the Department of Health and Human Services (HHS) is explicitly prohibited from negotiating directly with drug manufacturers on behalf of Medicare Part D enrollees. Although it would decrease both federal spending and beneficiaries’ out-of-pocket costs for prescription drugs, a policy allowing the federal government to negotiate drug prices for Medicare beneficiaries was noticeably absent from President Trump’s recent prescription drug announcement.

  2. President Trump and his Republican allies in Congress have repeatedly tried to slash funding for Medicaid and impose per-capita caps on coverage. Last year, the House of Representatives passed the American Health Care Act (AHCA) repeal bill, which included a per capita limit on federal Medicaid spending that would have resulted in huge cuts to Medicaid across states. After failing to pass the AHCA in the Senate, Republicans have continued to launch relentless attacks on Medicaid. Last December, the Trump Administration budget called for $1.4 trillion in cuts to Medicaid.

  3. The Trump Administration is encouraging states to impose work requirements and other bureaucratic restrictions on Medicaid enrollment in order to deny coverage. Experts warn that work requirements are fundamentally bureaucratic hurdles designed to restrict access to health care rather than increase employment. Previous examples show that requiring enrollees verify their employment or work-related activities will reduce enrollment among those eligible for Medicaid.

    Requiring people to work to maintain Medicaid coverage is particularly burdensome for older adults. Less than half of American adults ages 55 to 64 work. Some are retired, and for many others, chronic health conditions make it difficult to maintain steady employment.

  4. President Trump and Congressional Republicans are targeting Medicaid to pay for tax cuts for the wealthiest. Last December, President Trump signed a $1.5 trillion tax bill that disproportionately benefits the wealthy. How do Republicans plan on paying for it? Speaker Ryan’s answer is clear: “Frankly, it’s the health care entitlements that are the big drivers of our debt.” In an attempt to pay for these tax cuts, in April, House Republicans passed a budget amendment that would slash Medicaid funding by $114 billion in a single year alone.

  5. Congressional Republicans have also repeatedly voted to pay for tax cuts for the wealthiest by cutting funding for Medicare. The 2018 budget resolution passed by Republicans in December 2017 cut Medicare by $473 billion and more recently, the FY2019 budget passed by Republicans on the House Budget Committee cuts Medicare by an additional $537 billion.

As we celebrate this important health care anniversary, Protect Our Care calls on our leaders to protect health care for our most vulnerable and end their assault on the health and wellbeing of the millions of Americans who rely on Medicare and Medicaid.

###

Sean England
In News

Protect Our Care Fact Sheet on Health Repeal in Senate Passed Tax Bill

Spotlight: Rep. Ryan Costello (R-PA)

Senate Republicans passed a tax bill on Friday night that repeals health care to pay for another massive tax break for the wealthiest and corporations. What the repeal of the individual mandate in the Senate bill means is simple: while the wealthy and corporations get a tax break, middle-class families will get double digit premium increases, 13 million people will lose their coverage, older Americans will get an age tax and $25 billion in Medicare funding will be cut.

The bill passed by the House did not include the repeal of the individual mandate. The House should insist that it stays out. Rep. Ryan Costello (R-PA) has one opportunity left to take a stand against any inclusion of the individual mandate in the final bill which, if passed with the repeal of the individual mandate, would cause 505,000 people to lose coverage in Pennsylvania including 28,000 in Rep. Costello’s district, raise premiums on middle-class families by $2,300 and impose an age tax of up to $1,700 on older Pennsylvanians, and cut $1.2 billion in Medicare funds to Pennsylvania all to pay for tax cuts for the wealthy and corporations.

SENATE REPUBLICANS JUST VOTED TO REPEAL HEALTH CARE — RAISING PREMIUMS BY DOUBLE DIGITS FOR MIDDLE CLASS FAMILIES, RIPPING AWAY COVERAGE FOR 13 MILLION AMERICANS, IMPOSING AN AGE TAX ON OLDER AMERICANS AND GUTTING MEDICARE BY $25 BILLION — ALL TO PAY FOR SPECIAL TAX BREAKS FOR MILLIONAIRES AND BIG CORPORATIONS

Congressional Budget Office: Republican Tax Bill Will Result In 13 Million More Uninsured People. “The number of people with health insurance would decrease by 4 million in 2019 and 13 million in 2027.” [CBO, 11/8/17]

Center For American Progress: Senate Tax Bill Will Result In 505,000 More Uninsured In Pennsylvania, 28,000 More In Rep. Costello’s District.[Center for American Progress, 11/16/17, 12/5/17]

CBO: Average Premiums Will Increase By 10 Percent In Most Years Of The Next Decade Due To The Republican Tax Bill. “Average premiums in the nongroup market would increase by about 10 percent in most years of the decade (with no changes in the ages of people purchasing insurance accounted for) relative to CBO’s baseline projections.” [CBO, 11/8/17]

Center For American Progress: Marketplace Premiums For A Typical Middle-Class Family In Pennsylvania Will Rise By $2,300 In 2019. [Center for American Progress, 11/16/17]

CBO: Healthier People Less Likely To Purchase Health Coverage, Raising Costs For Everyone Else. “Those effects would occur mainly because healthier people would be less likely to obtain insurance and because, especially in the nongroup market, the resulting increases in premiums would cause more people to not purchase insurance.” [CBO, 11/8/17]

AARP: Premiums For People Over 50 Would Increase Up To $1,500 Nationally, And Up To $1,700 In Pennsylvania, Because Of Health Care Repeal In The Republican Tax Bill. “The Tax Cuts and Jobs Act as reported by the Senate Finance Committee on Nov. 16, 2017 includes a new provision that would both reduce health care coverage and increase costs for millions of Americans. Older adults ages 50–64 would be at particularly high risk under the proposal, facing average premium increases of up to $1,500 in 2019 as a result of the bill.” [AARP, 11/21/17]

CBO: Republican Tax Bill Would Trigger A $25 Billion Cut To Medicare.“Without enacting subsequent legislation to either offset that deficit increase, waive the recordation of the bill’s impact on the scorecard, or otherwise mitigate or eliminate the requirements of the PAYGO law, OMB would be required to issue a sequestration order within 15 days of the end of the session of Congress to reduce spending in fiscal year 2018 by the resultant total of $136 billion. However, the PAYGO law limits reductions to Medicare to four percentage points (or roughly $25 billion for that year), leaving about $111 billion to be sequestered from the remaining mandatory accounts.” [CBO, 11/14/17]

Center For American Progress: Pennsylvania Would See A $1.2 Billion Cut In Medicare Funds. [Center for American Progress, 11/16/17]

Sen. Marco Rubio (R-FL): Republicans Need To Cut Medicare Next To Pay For Tax Cuts. “‘I analyze this very differently than most,’ Rubio told the crowd. ‘Many argue that you can’t cut taxes because it will drive up the deficit. But we have to do two things. We have to generate economic growth which generates revenue, while reducing spending. That will mean instituting structural changes to Social Security and Medicare for the future,’ the senator said.” [Financial Advisor Magazine, 11/30/17]

Center On Budget And Policy Priorities: “Senate Tax Bill Would Add 13 Million To Uninsured To Pay For Tax Cuts Of Nearly $100,000 Per Year For The Top 0.1 Percent.” “The savings from eliminating the mandate would come entirely from reducing health coverage. For example, the federal government would spend less on premium tax credits because fewer people would sign up for marketplace coverage, less on Medicaid because fewer people would enroll, and less on the tax exclusion for employer-sponsored health insurance because fewer employees would enroll in job-based coverage. These savings are what let Senate leaders make their full corporate rate cut permanent…The benefits of corporate rate cuts go overwhelmingly to high-income households.” [CBPP, 11/15/17]

PASSING ALEXANDER-MURRAY AFTER VOTING FOR REPEAL IS LIKE INSTALLING GUARDRAILS ON THE HIGHWAY AFTER YOUR CAR HAS GONE OVER THE CLIFF

CBO: Passing Alexander-Murray After The Repeal Of The Individual Responsibility Provision Would Not Undo The Damage. “In your letter of November 21, 2017, you asked about the combined effects of simultaneously passing the BHCSA and legislation that would repeal the requirement that most U.S. citizens and noncitizens who lawfully reside in the country have health insurance meeting specified standards. Specifically, you asked if legislation that combined the provisions would change the agencies’ previous estimates of the number of people with insurance coverage or premiums in the nongroup insurance market. In the estimate for the BHCSA, the agencies wrote that, relative to the Summer 2017 baseline, the legislation would not substantially change the number of people with health insurance coverage, on net.” [CBO, 11/29/17]

There Is No Guarantee Alexander-Murray Would Pass The House, Let Alone Become Law. There is no guarantee Alexander-Murray would pass the House, let alone become law. Speaker Ryan dodged questions about its fate in the House. House conservatives called it a “nonstarter.” And President Trump has been all over the map on this issue his word cannot be trusted.

THE LEADING EXPERTS — PATIENT GROUPS, INSURERS, DOCTORS AND HOSPITALS — AND MORE THAN 2,400 FAITH LEADERS AND THE AMERICAN PEOPLE OPPOSE HEALTH REPEAL

American Cancer Society Cancer Action Network, American Diabetes Association, American Heart Association, And 16 More Leading Patient Groups: People With “Serious Health Care Needs” And With Pre-Existing Conditions “May Not Be Able To Afford Coverage.” “Many individuals with serious health care needs, including patients with chronic or major health conditions, who by definition, have a pre-existing condition, may not be able to afford coverage.” [The Hill, 11/28/17]

America’s Health Insurance Plans, American Academy Of Family Physicians, American Hospital Association, American Medical Association, Blue Cross Blue Shield Association, Federation Of American Hospitals: Leading Industry Groups Warn Of “Serious Consequences” Should The Mandate Be Repealed. “As providers of healthcare and coverage to hundreds of millions of Americans, we are committed to assuring everyone has access to a range of high quality, affordable coverage options so they can access the care they need, regardless of pre-existing conditions. To achieve this critical goal, we are urging you to maintain the individual mandate unless and until Congress can enact a package of reforms to adequately assure a balanced risk pool and prevent extraordinary premium increases.” [Letter, 11/14/17]

More Than 2,400 Faith Leaders: “That The Number Of Uninsured Individuals Would Increase By 13 Million By 2025…Violates Our Faith Teaching.” “The individual mandate is critical to keeping individual market coverage affordable and keeping the individual market stable. By repealing the individual mandate, legislation will cause catastrophic losses in health coverage. The CBO estimates that the number of uninsured individuals would increase by 13 million by 2025, which violates our faith teaching.” [Letter, 11/29/17]

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