Expect no help from the health insurance industry

If Senate Democrats are waking up the imminent reality of the Affordable Care Act’s repeal, they may not find allies in the health industry, Dylan Scott reports:

It’s a deliberate strategy, interviews with nearly 20 lobbyists and other experts suggest. Health industry groups generally don’t love Obamacare enough to jeopardize their ability to shape the rest of the Republican agenda — including big corporate tax cuts. They also fear incurring White House retaliation….

….Further complicating matters, different sectors within the industry have very different stakes in repealing Obamacare and replacing it with the GOP’s plan. Many health insurers are already ambivalent about Obamacare and could see significant tax cuts if the law is rolled back. Doctors and hospitals, on the other hand, could face a surge in uninsured patients if millions fewer Americans have health coverage.

Also known as “Money talks.”

For starters, the House health care bill repeals Obamacare’s various taxes on the industry, totaling nearly $200 billion in tax cuts over 10 years for drug companies, health insurers, and medical device companies.

And what happens if a tax overhaul is scuttled? Some rough back-of-the-napkin math, based on figures from the IRS, suggests the health care industry could see its collective taxes lowered by $2 billion a year if Trump gets his 15 percent corporate tax rate, though there are plenty of caveats until we see a detailed plan. Other parts of a reform plan, such as reducing or eliminating taxes on income earned abroad by American companies, could carry enormous benefits for, say, pharmaceutical companies.

“Pharma is hugely interested in tax reform,” Monk said. “That’s way more impactful to them than whatever happens with AHCA.”

Shoud Mitch McConnell use reconciliation to pass the bill, as seems likely, this bill can’t increase the deficit; that’s the rule. Therefore, the Senate bill will keel the proposed tax cuts in the House bill. That’s McConnell and his side’s MO.

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One Response to Expect no help from the health insurance industry

  1. Pingback: Ossoff v. Handel | Humanizing The Vacuum

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