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.
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.