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Mon Dec 16, 2019, 10:45 AM

Congress to permanently repeal 3 major health taxes in year-end spending deal

Source: Politico

Congress is expected to permanently repeal three major health industry taxes that were supposed to help pay for Obamacare in a final year-end spending agreement, in a big win for the health care industry.

Lawmakers have agreed to ax the Cadillac tax on pricey employer plans, a 2.3 percent tax on medical devices and a health insurance fee, four individuals familiar with the talks confirmed to POLITICO on Monday.

Congressional leaders struggled over the weekend to wrap up the remaining disputes over what would be included in the nearly $1.4 trillion fiscal 2020 spending text and which policy bills would ride to enactment along with the appropriations measures. While leaders are still racing to finalize a deal, top appropriators are said to be on track to release the text of the final fiscal 2020 funding bills by midday, setting up passage in both the House and Senate this week.

The repeal of the three taxes represents an expensive windfall victory for the health care industry, which lobbied intensely against all three taxes since they were first mandated by the Affordable Care Act.

Read more: https://www.politico.com/news/2019/12/16/congress-repeal-major-health-care-taxes-spending-deal-086138

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Reply Congress to permanently repeal 3 major health taxes in year-end spending deal (Original post)
brooklynite Dec 16 OP
dalton99a Dec 16 #1
RKP5637 Dec 16 #2
people Dec 16 #3
OneCrazyDiamond Dec 16 #4
usaf-vet Dec 16 #5
RKP5637 Dec 16 #6
ananda Dec 16 #7
RainCaster Dec 16 #8
Autumn Dec 16 #11
RainCaster Dec 16 #16
Autumn Dec 16 #18
House of Roberts Dec 16 #9
iluvtennis Dec 16 #10
bluestarone Dec 16 #14
dalton99a Dec 16 #15
sinkingfeeling Dec 16 #12
progree Dec 16 #13
progree Dec 16 #17
DeminPennswoods Dec 16 #19

Response to brooklynite (Original post)

Mon Dec 16, 2019, 10:55 AM

1. "The move all but guts the funding provisions for the Affordable Care Act"

The move all but guts the funding provisions for the Affordable Care Act, with the Cadillac tax repeal alone projected to cost nearly $200 billion. An outdated 2015 estimate from the CBO said a medical device tax repeal would cost about $24 billion over a decade, while the IRS estimated earlier this year that a repeal of the health insurance tax would amount to $15.5 billion just in 2020.

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Response to brooklynite (Original post)

Mon Dec 16, 2019, 11:05 AM

2. Yet another day in "UC" United Corporatism, formerly known as "US" United States.

One day to be known as "UD" United Dystopia! The fallen Rome of the 21st Century.

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Response to brooklynite (Original post)

Mon Dec 16, 2019, 11:05 AM

3. Gutting tax that supports the Affordable Care Act

Politico article says this healthcare tax repeal was pushed by Shumer. What a stupid thing to do when the Democrats are trying to distinguish themselves from the Republicans on healthcare. Truly disgusting! Health ins. cos. have members from both parties all bought and paid for. This move really nauseates me.

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Response to brooklynite (Original post)

Mon Dec 16, 2019, 11:08 AM

4. Me thinks this will result in less people insured.

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Response to brooklynite (Original post)

Mon Dec 16, 2019, 11:11 AM

5. This might be a plausible reason to even consider such a change.

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Response to usaf-vet (Reply #5)

Mon Dec 16, 2019, 11:15 AM

6. Very Believable. For eons, some religious types have loved to torture people in the name of their

god and for any lame excuse they can come up with.

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Response to brooklynite (Original post)

Mon Dec 16, 2019, 11:28 AM

7. Oh well. Just more death and bankruptcy.

Who cares ...

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Response to brooklynite (Original post)

Mon Dec 16, 2019, 11:29 AM

8. Slowly moving us to single payer...

That's the only way I can see this coming out.

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Response to RainCaster (Reply #8)

Mon Dec 16, 2019, 11:44 AM

11. How does this move us to single payer?

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Response to Autumn (Reply #11)

Mon Dec 16, 2019, 05:30 PM

16. WHen the GOP makes the ACA as painful as private health care, the European system looks pretty good

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Response to RainCaster (Reply #16)

Mon Dec 16, 2019, 06:09 PM

18. So when they destroy the ACA we will get single payer is that how it works? Alrighty then. nt

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Response to brooklynite (Original post)

Mon Dec 16, 2019, 11:33 AM

9. So Pelosi and Schumer are on board with this?

Biden thinks he can make deals with 'moderate' Republicans, while the home team guts his ACA resurrection?

Pollyanna...

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Response to House of Roberts (Reply #9)

Mon Dec 16, 2019, 11:41 AM

10. that's my question also. Can't believe they'd agree to this. nt

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Response to iluvtennis (Reply #10)

Mon Dec 16, 2019, 12:08 PM

14. I will WAIT til i hear it from them!

I'm sure the story will be a lot different!

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Response to House of Roberts (Reply #9)

Mon Dec 16, 2019, 12:48 PM

15. Good question. Why are Democrats helping Republicans defund the ACA?

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Response to brooklynite (Original post)

Mon Dec 16, 2019, 11:50 AM

12. Disgusting.

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Response to brooklynite (Original post)

Mon Dec 16, 2019, 11:55 AM

13. What is the "health insurance fee" also called the "health insurance tax" in the article?

It didn't ring a bell. I found this explanation

https://www.modernhealthcare.com/insurance/irs-says-reinstating-aca-insurance-tax-would-cost-insurers-155b-2020
IRS says reinstating ACA insurance tax would cost insurers $15.5B in 2020, Modern Healthcare, 9/14/19

The Internal Revenue Service on Tuesday published a notice asserting that health insurance companies face a $15.5 billion tax bill in 2020 if the ACA's health insurance tax resumes as planned.

The ACA created the tax, known as the health insurance industry fee, to fund implementation of the ACA's marketplace exchanges. It's an annual fee on health insurance providers based on premiums and a payer's market share. Congress suspended it in 2019 because it was concerned that the tax would increase insurance premiums and out-of-pocket costs for consumers. But there is no plan to put a hold on it for 2020. Congress previously implemented the tax in 2018 and put a moratorium on it for 2017.

Insurance premiums are likely to rise by more than 2% in 2020 if the IRS implements the tax as planned, according to a 2018 analysis by Oliver Wyman Actuarial Consulting that was commissioned by UnitedHealth Group. The tax could also increase costs for Medicare Advantage and Medicare Part D beneficiaries, small employers and states. The analysis also warned higher premiums could spark lower enrollment in the exchanges and a larger uninsured population.


I'm sure the last paragraph was from a health insurance industry-friendly perspective. But whatever, will there be more cuts to healthcare.gov and the state ACA exchanges for the states that have them?

Anyway, just posting this for anyone else curious about this item.

Edited to add: Kaiser Health News via NPR says its "a 3% tax on the health insurance industry"
https://www.npr.org/sections/health-shots/2019/11/19/780642946/want-new-taxes-to-pay-for-health-care-lessons-from-the-affordable-care-act

its probably more complicated than that given what the preceding articles says ("It's an annual fee on health insurance providers based on premiums and a payer's market share" ), but anyway just to give an idea of the magnitude in percentage terms. Again, in dollar terms, it is/was estimated to be $15.5 billion in 2020.

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Response to brooklynite (Original post)

Mon Dec 16, 2019, 05:40 PM

17. UnitedHealth, Humana stocks surge toward records after report health insurance tax may be eliminated

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Response to brooklynite (Original post)

Mon Dec 16, 2019, 10:47 PM

19. Just want to point out that 1.4T in federal spending is less

than 10% of the annual US GDP.

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