Morning Briefing
Summaries of health policy coverage from major news organizations
The Tax Bill's Impact On Health Policy: A Trigger For Medicare Cuts? Impact On Insurance Markets?
If Congress passes its tax bill and then takes no other action, the funding for dozens of federal spending programs could be cut 鈥 in many cases to nothing 鈥 beginning next year. The cuts would be automatic, the consequence of a 2010 law that Congress passed to keep itself from increasing the deficit too much. The biggest program affected would be Medicare, the health insurance program for older people and the disabled. But the law allows Medicare to take only a relatively small cut: 4 percent. (Sanger-Katz, 11/29)
Many state insurance officials, even some in red states, are warning that repealing ObamaCare's individual mandate in the GOP tax-reform bill would cause damage to their markets.聽Insurance commissioners warn that premiums would rise, insurers could drop out of the market and more people would go without coverage if the mandate is repealed, as Senate Republicans are poised to do as part of their tax bill this week. (Sullivan, 11/30)
Shares of U.S. healthcare companies mostly climbed on Wednesday, as investors saw some potential upside for the stocks from a Republican-led bill to cut taxes. ... 鈥淲e see tax reform as providing a durable benefit to healthcare services companies,鈥 Bernstein analysts wrote in a research note. 鈥淗ealthcare services companies generally pay the full 35 percent corporate tax, as domestic companies with limited adjustments.鈥 Possible changes to the Affordable Care Act and fees paid by health insurers could also benefit healthcare companies, they said. (Valetkevitch, 11/29)
The orphan drug tax credit also remains in play -
As congressional Republicans race toward a vote on their tax code overhaul, a key tax credit for biotech and pharmaceutical companies 鈥 the so-called聽orphan drug tax credit聽鈥 is on the line.聽The House passed a tax reform package earlier this month that would entirely repeal the credit, which is aimed at incentivizing research into treatments for especially rare diseases. The Senate version, up for a vote this week, lessens the amount companies can claim under the credit but keeps the idea in place. If it clears the Senate, the two chambers would have to reconcile their different versions before it could head to President Trump鈥檚 desk. (Mershon, 11/29)
Kaiser Health News: Patients With Rare Diseases And Congress Square Off Over Orphan Drug Tax Credits
As President Donald Trump talked tax reform on Capitol Hill Tuesday, Arkansas patient advocate Andrea Taylor was also meeting with lawmakers and asking them to save a corporate tax credit for rare disease drug companies. Taking the credit away, Taylor said, "eliminates the possibility for my child to have a bright and happy future." (Tribble, 11/30)
And in an attempt to secure the vote of Sen. Susan Collins (R-Maine), the GOP leadership is negotiating possibilities for advancing legislation to stabilize the Obamacare insurance markets -
Sen.聽Susan Collins聽(R-Maine) said Wednesday she has聽received a commitment from Senate GOP leadership to include ObamaCare funding in a must-pass bill.聽Collins said she聽got a promise from Majority Leader聽Mitch McConnell聽(R-Ky.) that the deal crafted by Sens.聽Lamar Alexander聽(R-Tenn.) and聽Patty Murray聽(D-Wash.) would be included in legislation this year. (Carney, 11/29)
House Freedom Caucus Chairman聽Mark Meadows聽(R-N.C.) said聽Wednesday聽that he opposes ObamaCare funding known as "reinsurance" that was part of a commitment given to Sen.聽Susan Collins聽(R-Maine) to help gain her vote for tax reform.聽"That's a totally different thing because that actually puts more money into a failing system where the money will not actually lower premiums and reduce costs in a substantial way," Meadows told The Hill. "I think that's a bigger problem." (Sullivan, 11/29)
