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Memo From Andy Slavitt: 3 Reasons Sen. Susan Collins Should Demand Health Repeal be Removed from the GOP Tax Bill

To: Interested Parties

From: Andy Slavitt, Former Acting Administrator for the Centers for Medicare and Medicaid Services

Date: December 5, 2017

Subject: 3 Reasons Sen. Susan Collins Should Demand Health Repeal be Removed from the GOP Tax Bill


Last week, Sen. Susan Collins (R-ME) joined 50 of her Republican colleagues to pass a sneaky health care repeal bill under the guise of tax cuts to the wealthy and corporations. This legislation, if enacted into law, will result in13 million people losing their health coverage, raising premiums by ten percent, forcing higher costs on older Americans to pay more for their care, and jeopardizing Medicare. Here are three reasons why Sen. Collins should reconsider her vote as Congress considers a final bill.

First, This Tax Bill Hurts Mainers’ Health Care, Especially Older Mainers.The Senate tax bill repeals the provision in the Affordable Care Act (ACA) that requires most individuals to have health coverage, the consequences of which would increase the number of uninsured, raise costs and devastate insurance markets. This is why 19 leading patient groups — including the American Heart Association, the American Diabetes Association, and the American Cancer Society; six leading industry groups — including the America’s Health Insurance Plans, the American Academy of Family Physicians, the American Hospital Association, the American Medical Association, the Blue Cross Blue Shield Association and the Federation of American Hospitals; and more than 2,400 faith leaders opposed repealing this provision arguing it would have serious consequences for care, particularly for people with chronic or major health conditions.

One estimate shows in Maine alone, family premiums in the marketplace will increase on average by $2,350 in 2019, and 50,000 Mainers will lose coverage by 2025.

Older Mainers would not be spared. The AARP estimates a 64-year-old will have to pay $1,748 more in premiums because of health repeal, essentially an age tax for people over 50.

In her own words, Sen. Collins expressed concern about including health repeal in the tax bill, calling it the bill’s “biggest mistake.” Last month she said, “The fact is that, if you do pull this piece of the Affordable Care Act out, for some middle-income families, the increased premium is going to cancel out the tax cut that they would get.”

Second, This Bill Jeopardizes Medicare. This tax bill jeopardizes Medicare funding and therefore the guarantee for senior health care. The Congressional Budget Office said budgetary rules would trigger $25 billion in Medicare cutsas a result of the tax bill the Senate passed, which would result in a $120 million cut for Maine next year alone. Sen. Collins said she received a “personal commitment” from Senate Majority Leader Mitch McConnell (R-KY) that these Medicare cuts would not happen. McConnell and House Speaker Ryan said Congress previously waived these rules in the past, so there is no reason why they would not in the future.

But here is a reason: Republicans are already talking about the need to cut Medicare and Social Security to deal with the $1.5 trillion this tax bill adds to the national debt. On the chopping block: Medicare and Social Security. Speaker Paul Ryan (R-WI) recently said, “we’ve got a lot of work to do in cutting spending.” Sen. Marco Rubio (R-FL) was more explicit, saying, “We have to generate economic growth which generates revenue, while reducing spending. That will mean instituting structural changes to Social Security and Medicare for the future.”

Third, Sen. Collins’ Proposed Fixes To Health Repeal Won’t Undo The Harm Of Health Repeal, Even If They Do Pass. Sen. Susan Collins agreed to vote for the tax bill after getting assurances from Senate Majority Leader Mitch McConnell to consider two pieces of legislation she believes would mitigate some of the damage caused by repealing the ACA’s requirement most people have health insurance: the so-called Alexander-Murray and Collins-Nelson bills. However, they won’t work to undo the damage of increasing the number of uninsured, raising costs and destabilizing the markets. Here is why.

The Alexander-Murray bill temporarily funds cost-sharing reduction (CSR) payments that help lower people’s deductibles and other out-of-pocket costs. But that assumed that the marketplaces would not be upended by repealing the individual mandate. Passing Alexander-Murray after repealing health care is akin to installing guardrails on the highway after your car has gone over the cliff. The Congressional Budget Office concluded Alexander-Murray in light of health repeal would essentially be a fig leaf, writing, “the effects on premiums and the number of people with health insurance coverage would be similar.” Plus, the funding for Alexander-Murray would only help lower premiums for silver plan holders in 2019, according to the Center on Budget and Policy Priorities. What about people who chose other types of plans? Their premiums still go up 10 percent. What about after 2019? Premiums go up.

Next, the Collins-Nelson bill would temporarily fund a reinsurance program to mitigate the devastating impacts of health repeal. As the Center on Budgetfound, “Pairing mandate repeal with the Collins-Nelson bill, or a similar approach, thus would not change the fact that repealing the mandate would drive up uninsured rates. That would weaken access to care, health, and financial security for millions of people. It would also substantially raiseuncompensated care costs, which would ultimately be borne by providers, other health care consumers, and taxpayers.”

There Is No Guarantee These Bills Sen. Collins Is Proposing Will Become Law. A close reading of Senate Majority Leader Mitch McConnell’s assurances to Sen. Collins, coupled with past statements from Republican Leaders, raises serious doubts about whether the proposed legislation she wants would become law.

House Republicans have been very reluctant to consider the Alexander-Murray bill. Speaker Paul Ryan has not committed to passing it as part of the tax bill, and he previously opposed it. House conservatives called it a “nonstarter.” President Trump has been all over the map on this issue, from supporting to opposing to again supporting — so who knows what he would do.

Rep. Mark Meadows (R-NC), the chair of the influential House Freedom Caucus objected to passing the Collins-Nelson bill as part of the tax deal.

On ABC’s This Week, Sen. McConnell explained the assurances he gave Sen. Collins:

I’ve committed to Senator Collins to offer Alexander Murray and another bill that she and Senator Nelson from Florida are offering to one of these year-end bills that we’ll be doing in the next couple of weeks. The president is committed to signing it. And we intend to keep our commitment.

So, McConnell is only committing to offering the bills, not guaranteeing they will be included in must-pass legislation. He only mentions President Trump is committed to signing it, but fails to mention anything about the House.

The negative consequences this tax bill has to people’s health care is just one of long list of reasons why Sen. Collins should reconsider her vote as Congress considers a final proposal. There is still time for her to change her mind. We hope she does.

Protect Our Care Statement On Passage of Senate GOP Tax Scam which Guts American Health Care to Give Tax Breaks to Billionaires and Wall Street

In response to the Senate passing the GOP’s Senate tax scam which includes sneaky health care repeal, Protect Our Care Campaign Director Brad Woodhouse released the following statement:

“Today, Senate Republicans and President Trump made their priorities clear: tax breaks for the rich and powerful and big corporations, all of whom are doing just fine in today’s economy, are more important than the health care of millions of Americans,” said Woodhouse.

“Under this bill, 13 million people will have their health coverage ripped away, premiums will skyrocket double digits for millions more, Medicare will be slashed by $25 billion next year alone and older Americans will face an age tax — all so the wealthiest and corporations can get a tax break. And none of the promises which have been made to some members to get their votes, including the passage of the Alexander-Murray stabilization bill, will undo the damage this bill will cause and hiding behind these sham deals is just plain wrong.

“After a year of historically bad poll numbers, rising public support for the Affordable Care Act and election losses in November tied to the issue of health care, Republicans are performing the political equivalent of Harakiri to appease Republican donors who want a fat tax break for themselves and a political win for their party, the health security of millions of Americans be damned in the process. Fortunately, this issue is far from decided and in the ensuing days and weeks Republicans in the House and Senate will be subject to a barrage of ads, calls, events and protests from constituents who will not stand idly by while American health care is sacrificed on the altar of tax breaks for the rich.”

Support for ACA Continues to Rise – Over 2/3 of Voters Want ACA Kept and Fixed, Not Repealed; Voters Oppose Tax Bill Killing ACA Mandate

From: Jim Williams, Public Policy Polling

To: Interested Parties

Subject: Support for ACA Continues to Rise – Over 2/3 of Voters Want ACA Kept and Fixed, Not Repealed; Voters Oppose Tax Bill Killing ACA Mandate    

Date: December 14, 2017

A new Public Policy Polling survey finds that approval of the Affordable Care Act continues to rise among voters, and nearly 7 in 10 want Congress to keep what works about the ACA and fix what doesn’t rather than repeal it and start over with a new healthcare law. Further, only 29% of voters say they support the Republican tax bill currently being debated in Congress after learning it includes a health care repeal that removes the individual mandate in the Affordable Care Act.

Key findings from the survey include:

  • Voter approval of the Affordable Care Act continues to rise. 57% say they approval of the law compared to just 36% who say they disapprove – a 21 point gap. This is up 5 points from a September poll done for Save My Care where approval was 54/38.
  • Voters continue to strongly think that Congress should keep what works about the ACA and fix what doesn’t rather than repeal it and start over with a new healthcare law – voters say so by a 68/30 margin in this poll expanding to 71/26 among independents. That 38 point advantage is up from a 27 point advantage of 60/33 from an October poll done for Save My Care.
  • Just 29% of voters say they support the Republican tax bill currently being debated in Congress after learning it removes the individual mandate in the Affordable Care Act.

PPP surveyed 585 registered voters nationally from December 12-13, 2017.  The margin of error is +/- 4.1%. This poll was conducted using automated telephone interviews for Protect Our Care.

Protect Our Care Statement on Senate Passage of Motion to Proceed

In response to the Senate voting to proceed on the GOP tax bill, Protect Our Care Campaign Director Brad Woodhouse released the following statement:

“Senate Republicans, with the enthusiastic support of President Trump, just voted to advance a bill that would rip away health coverage from 13 million people, raise premiums on millions more, impose an age tax on older Americans and slash Medicare by $25 billion,” said Woodhouse. “They are doing so to give tax breaks to golf resorts, private jet owners, the idle rich and multi-national corporations, all while raising taxes on the middle class. This bill is beyond terrible policy — it will devastate the lives of millions. This sneaky health care repeal scam is opposed by a coalition of nineteen leading patient groups and more than 2,400 faith leaders, as well as the vast majority of Americans. As this bill moves forward in the Senate, we will hold Members accountable for repealing the health care of the American people to give tax breaks to billionaires and big corporations.”

Protect Our Care Statement on CBO Analysis Confirming That Alexander-Murray Will Not Solve the…

In response to new findings from the nonpartisan Congressional Budget Office which determine that Alexander-Murray will have little effect on the country’s health care marketplace if the GOP goes through with their sneaky repeal, Protect Our Care Campaign Director Brad Woodhouse released the following statement:

“This confirms what every policy expert has been saying for weeks,” said Woodhouse. “Alexander-Murray means nothing if health care is repealed, and make no mistake, the GOP tax bill would do just that. Sneaky repeal would be disastrous, unnecessarily harming middle-class Americans, wrecking the country’s health care marketplace and cutting Medicare all to provide a tax cut to the wealthiest and corporations.

“Passing Alexander-Murray after voting for repeal is like installing guardrails on the highway after your car has gone over the cliff. It’s useless. Every Senator who doesn’t want to harm our nation’s health should vote against it.”

Protect Our Care Statement on Tax Bill Passing Out of Senate Budget Committee

In response to the news that the Senate Budget Committee voted 12–11 to advance the GOP tax bill, Protect Our Care Campaign Director Brad Woodhouse issued the following statement:

“This bill is a disgrace,” said Woodhouse. “It repeals our health care in order to give billionaires and corporations a massive tax break. It was crafted in secret, on a purely partisan basis, with no expert input, and its provisions are opposed by every major health group in America. This bill would kick 13 million Americans off of their insurance, raise premiums across the board, trigger a $25 billion cut to Medicare and further destabilize the insurance markets.

“If this bill passes, it is tantamount to repealing the Affordable Care Act. President Trump’s support for the Alexander-Murray bill is a sham. Alexander-Murray does nothing to make up for the damage the Senate bill causes and everyone knows that, including its authors. Even more cynically, the House leadership does not support the bill and House conservatives have referred to it as a ‘nonstarter.’

“This bill will rip health care away from millions and raise costs for millions more, hammering older Americans and people in rural areas. The consequences for middle-class Americans will be enormous. Shame on any senator who supports it.”

Protect Our Care Statement on Senate Finance Passage of Tax Bill

In response to the GOP tax bill — which contains a repeal of the individual mandate, something the CBO found would increase premiums double-digits and kick 13 million people off of their health insurance — passing the Senate Finance Committee, Protect Our Care Campaign Director Brad Woodhouse released the following statement:

“This is unconscionable,” said Woodhouse. “To say the GOP isn’t listening to their constituents would be the understatement of the year. Ten days ago voters across the country made clear their support of the Affordable Care Act, electing candidates who supported its expansion, voting out entrenched incumbents who backed repeal and resoundly passing a Medicaid expansion the first time the ACA was on the ballot. Now, just days later, the GOP is responding to this outpouring of support for the expansion of health care by moving forward legislation tantamount to its repeal.

“This bill would raise premiums double-digits across the board, kick 13 million people off of their health insurance and cut $25 billion from Medicare — all so the wealthiest Americans and corporations can get a tax break. Republicans in Congress are so insistent on giving their donors a tax cut that they have no problem raising health care costs for the middle-class families who need it most while crippling the health insurance marketplace. Republicans in the Senate who said ‘no’ to previous efforts at repeal should say ‘hell no’ to this one.”

Protect Our Care Statement On Potential Inclusion Of Individual Mandate Repeal In GOP Tax Bill

In response to the news that Congressional Republicans are mulling the inclusion of a repeal of the individual mandate in their tax plan — which the CBO estimated would raise premiums by double-digits and leave 13 million people without health coverage — Protect Our Care Campaign Director Brad Woodhouse released the following statement:

“It was exactly one week ago today that voters across the country sent a clear message rejecting the Republicans’ partisan health care repeal agenda, and yet here we are again,” said Woodhouse. “After repeatedly failing to repeal the Affordable Care Act, of which their legislation was the least-popular bill in three decades, Republicans are apparently trying once again to jam a partisan repeal down the throats of the American people to pay for tax breaks for the wealthiest individuals and corporations.

“The Congressional Budget Office found that repealing the individual mandate would raise premiums by double-digits and leave 13 million people without health coverage, sowing widespread chaos in the marketplace. Make no mistake, repealing the individual mandate is tantamount to repealing the Affordable Care Act and as such it would be wise for those few Republicans in the House and Senate who said ‘no’ to previous efforts at repeal to say ‘hell no’ to this one.”

Protect Our Care Statement on President Trump’s Nomination of Alex Azar to Head HHS

In response to President Donald Trump’s announcement that he is nominating Alex Azar to be Secretary of Health and Human Services, Protect Our Care Campaign Director Brad Woodhouse released the following statement:

“President Trump has nominated in Mr. Azar someone who shares his misguided and factually flawed views on the Affordable Care Act.” said Woodhouse. “Mr. Azar, a drug industry lobbyist, has been a harsh critic of the ACA and has gone so far as to say that the law is ‘circling the drain’ despite evidence to the contrary. In fact, the ACA is working despite President Trump and former HHS Secretary Tom Price’s repeated efforts to repeal and sabotage it — open enrollment is off to a strong start, plans remain affordable and every county in the country is covered.

“The nomination of a new HHS Secretary could be an opportunity for Trump and Republicans to turn the page on their repeal and sabotage agenda, especially in light of last week’s election results where Republicans lost across the country with the GOP’s unpopular health care agenda being a leading cause. Sadly, we know President Trump will never turn the page, and in Mr. Azar he he appears to be looking for a willing partner in his spiteful ongoing campaign to deny affordable health care to millions of Americans.”

Protect Our Care Statement On CBO Scoring of Individual Mandate Repeal

In response to the Congressional Budget Office (CBO) releasing an updated analysis on the effects of a repeal of the individual mandate, Protect Our Campaign Director Brad Woodhouse released the following statement:

“Just one day after voters across the country sent a message rejecting partisan health repeal, the Congressional Budget Office once again showed why,” said Woodhouse. “The latest GOP attempt to repeal health care in the tax bill would raise premiums by double digits and leave 13 million more people without health coverage. All of this would be done to pay for tax cuts for the wealthiest individuals and corporations.

“CBO also said premiums will go up even more if President Trump continues to sabotage our health care and refuses to make cost-sharing reduction payments. Congress should move immediately to pass the bipartisan Alexander-Murray bill to keep that from happening.

“After four failed attempts to repeal health care in the Senate and the absolute drubbing that pro-repeal candidates took across the country last night, it’s clear that a repeal of the individual mandate is not what people want and will have tremendous consequences. It’s time to move on.”