Taxes on Drug and Device Companies Removed in Repeal Plan: Insurers and Health Care Industry Concerns

Repeal proposes cutting taxes on Pharmaceutical and Medical Devise Companies while raising costs for elderly and those with pre-existing conditions.

 The CEO of Blue Cross of California opposes current reform proposals, citing cost increases for individuals and families and harm for people with pre-existing conditions, such as cancer, diabetes:

 http://californiahealthline.org/news/blue-shield-ceo-says-gops-flawed-health-bill-would-harm-sicker-consumers/?utm_campaign=KHN%3A%20Daily%20Health%20Policy%20Report&utm_source=hs_email&utm_medium=email&utm_content=51531075&_hsenc=p2ANqtz-_R6IjlbfGK21ZmqOhdgpRftSuG3hI-MtHy5Y8EHjTqJQLj9z9AngZjPkmjkbGJoP9wDP4UR52iVtLAys0LGHQ7wjkG6Q&_hsmi=51531075

 MODERN HEALTH CARE CITES COSTS CONCERNS ABOUT  CHANGES TO ACA FOR INDUSTRY

Reprinted below from Modern Health Care are the key changes to the  ACA from to tax subsidies, repeals taxes on pharmaceutical companies and medical devices, increases costs and leave 24 million without insurance:

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House Republicans plan to vote Thursday on a revised bill that seeks to eliminate provisions of the Affordable Care Act. The nonpartisan Congressional Budget Office estimates that the legislation will result in 24 million people losing their health insurance by 2026.

Here are key elements of the bill:

  • Ends the tax penalty against people without coverage.
  • Ends the Medicaid expansion funding.
  • Changes Medicaid from an open-ended program to one that gives states fixed amounts of money per person.
  • Replaces the ACA’s cost sharing subsidies based mostly on consumers’ incomes and premium costs with tax credits that grow with age.
  • Repeals taxes on the wealthy, insurers, drug and medical device makers.
  • Consumers who let their coverage lapse for more than 63 days in a year would be charged 30% surcharges to regain insurance. This would include people with pre-existing medical conditions.
  • State waivers would allow insurers to charge older customers higher premiums by as much as they’d like.
  • States get $8 billion over five years to finance high-risk pools that cover those with pre-existing conditions.
  • States get $130 billion over a decade to help people afford coverage.
  • Keeps ACA provision that children can remain on their parents’ insurance plans until age 26”

COMMONWEALTH FUND ALSO SITES CONCERNS: 

http://www.commonwealthfund.org/publications/blog/2017/apr/amendment-aca-repeal-and-replace-bill

ESSENTIAL BENEFITS AND ROLE OF STATES;

States may also have the power to cut Essential Benefits. This could impact Mental Health and Addiction Coverage as well as Preventive Health Coverage which were new additions in ACA coverage.

The legislation could change in the Senate, but these are significant changes.

About Kathleen

Kathleen O’Connor: 30+ year health care consumer advocate, non-profit executive and author. For more information about Kathleen, please see "About" on the main content bar above.
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