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HOUSE TEES UP VOTE TO REPEAL OBAMACARE’S ‘CADILLAC TAX’: The House has a target on one part of Obamacare that both Republicans and Democrats hate: The 40% tax on health insurance coverage deemed overly generous.
The House is set to vote Wednesday on a bill that would fully repeal the tax, known as the “Cadillac Tax,” which was once seen as integral to funding the healthcare law but is now widely viewed by lawmakers as a penalty on the middle class.
The tax was intended to go after higher-cost, more robust health insurance plans. Increasingly, however, a large swath of middle-class workers have plans that would considered overly generous under the rules Obamacare laid out.
As healthcare prices have continued to rise, so have healthcare premiums for employer plans. An analysis from the Kaiser Family Foundation shows that roughly a fifth of employers who offer healthcare coverage would be affected when the tax is expected to go into effect in 2022. The percentage of employers with plans reaching the threshold will grow to 37% by 2030, according to KFF.
If the tax goes into effect, employers are expected to cut benefits or shift costs onto middle-income workers, such as teachers and nurses.
The legislation, introduced by Joe Courtney, a Connecticut Democrat, is expected to pass easily this week because it has 361 co-sponsors. Its future hasn’t yet been set in the upper chamber. The Senate bill, introduced by Democrat Martin Heinrich of New Mexico, has 42 co-sponsors.
This isn’t the first time that lawmakers have come together over the Cadillac tax. The tax was intended to go into effect in 2018, but was delayed. It was delayed again to 2022 as part of a spending bill passed in 2018.
Good morning and welcome to the Washington Examiner’s Daily on Healthcare! This newsletter is written by senior healthcare reporter Kimberly Leonard (@LeonardKL) and healthcare reporter Cassidy Morrison (@CassMorrison94). You can reach us with tips, calendar items, or suggestions at [email protected]. If someone forwarded you this email and you’d like to receive it regularly, you can subscribe here.
EHEALTH: OBAMACARE COSTS FOR 4-PERSON FAMILY TOPS $25K: A family of four who hits their deductible had an average healthcare plan that costs $25,000 in 2019, according to a survey out Tuesday by eHealth. The data also show that average premiums for two-person families broke $1,000 per month for the first time in 2019. These are the costs that unsubsidized families would incur.
The good news: Deductibles marked their first significant decline since Obamacare took effect. For an individual the average decline was 6% and for a family it was 8%.
MOST LEAVE COMES AFTER A SERIOUS ILLNESS, CAP ANALYSIS FINDS: Twenty-one percent of people who used the Family and Medical Leave Act in 2012 did so for the birth of a new child, according to a brief from the left-leaning Center for American Progress. Most other reasons were associated with taking time away to recover from a serious illness (55%) or care for a loved one with a serious illness (18%).
The organization is arguing for policies that address not just the birth or adoption of children, as Republican proposals have laid out, but also sick leave. “As policymakers start to address the demand for a federal paid leave policy, they must pursue a comprehensive program that truly meets the needs of all workers and their families, not just a select few,” authors of the report write.
TITLE X ABORTION RESTRICTIONS GO INTO EFFECT: The Department of Health and Human Services announced Monday that family planning clinics that receive Title X grants are now prohibited from directly referring patients to abortion providers. Many abortion-rights groups call the administration’s “Protect Life Rule” a “gag rule,” and say the measure is part of the president’s larger “ideological agenda.” Last week, the 9th Circuit Court of Appeals upheld a June decision to lift injunctions that had blocked the rule from being enforced.
FDA READY TO REVIEW E-CIGARETTES: In a wider effort to police tobacco marketing tactics to teens, acting Food and Drug Administration Commissioner Ned Sharpless said the agency is ready to dissect all incoming applications from tobacco companies seeking to sell e-cigarettes nationwide. Sharpless says the FDA must be sure that manufacturers will not target kids in developing their products, something e-cigarette manufacturers have been accused of in past years. Last week, the District Court of Maryland made the final decision that all applications for approval to market in the U.S. must be submitted within the next 10 months.
CMS PROPOSES COVERING ACUPUNCTURE FOR MEDICARE ENROLLEES WITH CHRONIC BACK PAIN: The Centers for Medicare and Medicaid Services on Monday proposed covering acupuncture for Medicare beneficiaries who struggle with chronic back pain, a leading reason for opioid prescription. Those eligible would need to be enrolled in clinical trials with the National Institutes of Health or CMS-approved studies.
RICK SCOTT SAYS PHARMA DID NOT ANSWER ANY QUESTIONS ABOUT LOWERING DRUG PRICES: Florida Republican Rick Scott said pharmaceutical trade group PhRMA “didn’t provide a single answer or solution,” to questions he and seven other GOP senators sent regarding rising drug costs. PhRMA CEO Stephen J. Ubl told Scott the company has been in communication and has cooperated with both judiciary and health committees in the Senate, but Scott said PhRMA is “all talk, no action.”
KAMALA HARRIS UNVEILS DRUG PRICING PLAN: Drug companies found to charge too much for their medicines would face federal investigations under a plan Kamala Harris rolled out Tuesday. The plan would call on Congress to have HHS set prices for drugs, in part by comparing them to what other countries charge, and would remove a tax provision that lets pharmaceutical companies deduct the costs of advertising to consumers. Read more.
BIDEN CANCER INITIATIVE TO CLOSE DUE TO ‘UNIQUE CIRCUMSTANCES:’ Former vice president Joe Biden’s cancer research initiative will suspend research operations, it announced Monday. Greg Simon, president of the Biden Cancer Initiative, said: “We remain personally committed to the cause, but at this time will have to pause our efforts.” Joe and Jill Biden resigned from the organization’s board in April but encouraged the team to go on without them. The Associated Press reported that the organization has lagged in progress since the Bidens left the board.
BIDEN UNVEILS HEALTHCARE PLANS FOR OLDER AMERICANS: Biden released a plan to support older middle-class adults by making healthcare more affordable, especially as they begin retirement. He would allow the government to directly negotiate drugs under Medicare, provide training and compensation for long-term caregivers, allow Americans to purchase drugs from other countries, and expand the Earned Income Tax Credit to cover those over the age of 65 so older workers who earn lower wages can receive the same tax credits as younger Americans.
RURAL HOSPITALS KEEP CLOSING DUE TO MORE THAN JUST LACKLUSTER SAFETY-NET PROVISIONS: Since 2010, 107 rural-area hospitals that benefit from the 340b drug savings program, meant to help hospitals extend already scarce resources by saving on prescription drugs, have closed their doors. Many are eager to blame closures on the 340b drug savings program, saying the safety-net measure isn’t doing what it should be doing. But industry experts say it’s more complicated than that. Factors including low Medicaid reimbursements for covering those unable to pay for their own services, as well as smaller populations to serve, contribute to an increased number of shuttered hospitals in areas that rely on them for all levels of care.
OPINION: JOE BIDEN’S HEALTHCARE PLAN WOULD BE OBAMACARE ON STEROIDS
The Rundown
The Hill Biden: If you like your private health insurance, ‘you can keep it’
Stat In a small study, a cancer vaccine assist beats immunotherapy drugs alone
NPR Records show Medicare Advantage plans overbill taxpayers by billions annually
ProPublica Going quiet: more states are hiding 911 recordings from families, lawyers and the general public
The New York Times How the opioid crisis arrived at New York’s commuter hubs
Calendar
TUESDAY | July 16
Congress in session.
July 16-17. Hilton DC National Mall Hotel. World Congress Medicare Summit. Agenda.
July 16-17. Hilton DC National Mall Hotel. World Congress Medicaid Summit. Agenda.
10 a.m. 2123 Rayburn. House Energy and Commerce Committee’s Oversight Subcommittee to hold hearing on “Oversight of Federal Efforts to Combat the Spread of Illicit Fentanyl.” Tune in.
WEDNESDAY | July 17
9 a.m. 1225 I St. NW. Bipartisan Policy Center event on “Surprise Medical Bills.” Details.
THURSDAY | July 18
8 a.m. AJAX. Axios event on “The Future of Pain Management.” Details.
2 p.m. 2253 Rayburn. AIDS Institute congressional briefing on “Viral Hepatitis Elimination in the U.S.” RSVP.
3:30 p.m. 1225 I St NW. Bipartisan Policy Center event on “The Sandwich Generation’s Financial Strain: How Caregivers Balance Family and Finances.” Details.
4 p.m. CVC 209-08. Chamber of Commerce event on “Tomorrow’s Cures: Impacts of the International Pricing Index.” Details.
FRIDAY | July 19
8 a.m. 2101 Constitution Ave. NW. National Academies of Sciences, Engineering, and Medicine will host a workshop on “Preparedness for 21st Century Health Threats.” Details.
MONDAY | July 22
July 22-23. Better Medicare Alliance Medicare Advantage Summit. Details.
