Print this article
- 02/14/2017

Health law taxes, an issue GOP needs to face soon

Pharma Horizon

It is well known that Republicans want to reapeal the Obamacare, however they’re divided over whether to repeal the taxes the law imposed to finance its expanded coverage for millions of Americans.

“Whatever we do in replacement is going to cost some money, and is there a way to generate money if we ditch all the Obamacare tax revenues or not? That’s where we haven’t achieved consensus,” said No. 2 Senate GOP leader John Cornyn of Texas, who supports erasing taxes.

The GOP has different options for preserving revenues, like phasing in repeals of taxes or eliminating some while retaining others. Participants say Obama’s taxes on medical device makers and on insurance and pharmaceutical companies seem among the likeliest to go.

Besides financing their replacement programs, Republicans will need additional billions to deliver on their pledge to not abruptly halt coverage for the 20 million people receiving it under Obama’s law. That means covering them during a transition period of perhaps two years or more until new GOP programs begin.

The health insurance industry has warned it will need billions in federal payments that companies currently receive to continue during that transition.

“We could be asked to take a very, very tough vote to stabilize the insurance market,” said Rep. Michael Burgess, R-Texas, who heads a House health subcommittee.


Source: The Washington Post