Soak the Poor, Feed the Rich

Trumpcare will eliminate virtually all of the taxes that Obamacare introduced to expand health care coverage, including the Medicare surcharges that only apply to high earners: 0.9% on earned income and 3.9% on investment income. That in itself is a 16% cut in taxes on investments for a class of people who make lots of money from investments. Health savings accounts will increase the tax breaks available to high-income families. The “Cadillac tax,” which would have affected people with generous health plans, will be pushed back until 2025 (in a transparent bid to improve the bill’s scoring for reconciliation purposes), with the expectation that it will be repealed at some point in the future.

.. Because Trumpcare eliminates the individual mandate, more healthy people are likely to opt out of coverage. This will increase the average actuarial cost of people buying individual plans, which will push up premiums—a transfer from sick people to healthy people.

.. Trumpcare achieves the long-held conservative dream of converting Medicaid into a block grant program, which means that Republican state governments will be able to use the money in ways that are only tangentially related to providing health care for poor people. (Temporary Assistance for Needy Families block grant money, for example, is routinely used to support abstinence programs or premarital counseling services aimed at getting couples to marry.)

.. People will need the same amount of health care no matter what Congress does. If the government pays less for health care, poor people will have to pay more. If they can afford it, Trumpcare is effectively the same as a tax on the poor. If they can’t afford it, it’s even worse. This is as naked an example of class warfare as you’ll see today.

AHCA is a betrayal of all the GOP’s promises on health care

It does the opposite of what they say.

The American Health Care Act, passed today by the US House of Representatives, is a law that fundamentally does the reverse of what its proponents are promising.

Having run a campaign during which he promised to cover everyone, protect Medicaid from cuts, and replace Affordable Care Act plans with “terrific” coverage, Donald Trump is now behind a bill that cuts Medicaid, covers fewer people, and allows states to replace ACA plans with stingier coverage. Having promised repeatedly to protect patients with preexisting health conditions from insurance market price discrimination, Paul Ryan is pushing a plan that removes existing protections and replaces them with hand-wavy and inadequately funded high-risk pools. Having leveraged public discontent with high deductibles and rising premiums, Republicans are pushing a bill that will leave most patients with higher out-of-pocket costs for equivalent plans and bring back skimpy plans with even higher deductibles.

That’s all happening because the GOP is committed to rolling back the taxes that pay for the Affordable Care Act, delivering a financial windfall to high-income families even though Treasury Secretary Steve Mnuchin swore at his confirmation hearings that the Trump administration would not pursue tax cuts for the rich.

.. When Ryan initially rolled out the American Health Care Act, he accompanied it with a Frequently Asked Questions page that offered a firm statement of moral purpose regarding the treatment of patients with preexisting conditions:

That statement is now gone from the House leadership’s website. In search of additional Freedom Caucus votes, Ryan abandoned that commitment and signed on to the MacArthur Amendment that will, in fact, allow insurers to charge higher premiums to sick people.

.. “I’m not going to cut Social Security like every other Republican and I’m not going to cut Medicare or Medicaid,” Trump told the conservative Daily Signal way back in May 2015. “Every other Republican is going to cut, and even if they wouldn’t, they don’t know what to do because they don’t know where the money is. I do.”

.. That fall, his promises got even bigger. “I am going to take care of everybody,” he told 60 Minutes. “I don’t care if it costs me votes or not. Everybody’s going to be taken care of much better than they’re taken care of now.”

.. The bill his party is now pushing will cover fewer people, charge higher premiums, raise copayments, and raise deductibles.

The reason is that the AHCA takes a ton of money out of the health care system in order to provide a $600 billion tax cut,

.. While running for president, for example, Barack Obama promised that his health plan would lead to lower premiums for average families. When pressed, his policy team would gladly clarify that what he meant was premiums would increase at a lower-than-expected rate. That was a reasonable promise, but not nearly so politically appealing as the much grander promise the candidate made in his speeches. And the policy of misleading people worked well enough until he was actually in office, signed a major health care bill, and then people discovered that their premiums were not, in fact, going down.

Tom Cotton: an ambitious Republican in the era of Trump — and in the crossfire of health care

On most issues, the lanky Cotton, a rising star in the party, has emerged as one of President Trump’s staunchest supporters, aligning in both tone and substance with the enthusiastic conservative base that helped elect the president. However, on health care, he has not marched in lockstep with the president

.. “There’s kind of a joke among liberals here that he was created in a lab, as we always say, because he’s this conservative everyman,”

.. At the other end of the spectrum are conservative senators such as Rand Paul (R-Ky.) who want to see a more forceful repeal than many of his GOP colleagues. “I’m still open-minded. I do want to vote for a repeal bill,” said Paul

.. Cotton, an Army veteran of the wars in Iraq and Afghanistan who has built a reputation around his hawkish national security views, also backed Trump’s foreign policy approach. He said the president made the “right call” with his decision to strike a Syrian air base last this month.

.. “Lock him up!” some chanted as Cotton defended the president’s foreign policy and ticked through the list of world leaders Trump has met with. They were putting a twist on “Lock her up!” — a popular anti-Hillary Clinton chant at Trump campaign rallies. Others tried to drown them out with “U.S.A.!”

.. “We’d love to get, you know, 52 votes on whatever it is that ultimately emerges from the Senate,” said Sen. John Thune (S.D.), the third-ranking Republican senator. “But we know we have to get 50 plus Vice President Pence.”