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Alaska sees 26 percent drop in health insurance rates

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ANCHORAGE, Alaska (AP) — Some of the highest insurance rates in the nation just got a little bit cheaper. Premera Blue Cross Blue Shield is the sole provider for the Alaska individual health insurance market. It announced Tuesday that its rates will decrease 26.5 percent for 2018. The company says on average, that means a […] Reported by Seattle Times 5 hours ago.

The Obamacare "Death Spiral": Health Plans Now Cost Employers More Than A New Car

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The Obamacare Death Spiral: Health Plans Now Cost Employers More Than A New Car With the Graham-Cassidy Obamacare replacement now officially dead, it appears Senate Republicans will be unable to pass a repeal-and-replace bill before the Sept. 30 deadline announced by the Senate Parliamentarian arrives – though it’s impossible to rule out another long-shot plan gaining momentum in the coming days.

After the deadline, Senate Republicans would need 60 votes for their repeal-and-replace bill, effectively killing the repeal-and-replace effort, at least for now.

As Republicans struggle to fulfill their campaign promises to the American people, the Wall Street Journal has published a report showing that rising premiums are forcing some small business owners to stop offering benefits, the latest sign that Democrats ignored Republican rhetoric about the bill’s job-killing potential at their own political peril.

As we’ve reported time and time again, the bill has increased cost pressures on businesses, forcing them lay off employees or pare back benefits to stay in business.

According to WSJ,* the average cost of health coverage offered by employers pushed toward $19,000 for a family plan this year, while the share of firms providing insurance to workers continued to edge lower*, according to a major survey by the Kaiser Family Foundation.

Annual premiums rose 3% to $18,764 for an employer plan in 2017, from $18,142 last year, the same rate of increase as in 2016, according to an annual poll of employers conducted by Kaiser and the Health Research & Educational Trust, a nonprofit affiliated with the American Hospital Association.

Premiums for employers have been climbing for several years, though, as WSJ notes, their rise has been slowed somewhat by a shift toward larger out-of-pocket costs for employees in the form of higher deductibles. That move slowed this year, as deductibles were roughly flat, compared with 2016.

Kaiser foundation officials said it wasn’t clear why the growth in deductibles appeared to pause this year. The average general deductible for single coverage among all workers, including those with no deductible, this year was $1,221 – the same as last year, but up sharply from $802 in 2012. This year, 28% of covered workers were enrolled in high-deductible plans that can be paired with savings accounts that aren’t taxed, compared with 29% last year and 19% five years ago.

Drew Altman, chief executive of the Kaiser foundation, said it was too soon to tell if the growth in deductibles would quickly resume next year, or if employers are reluctant to keep pushing the tactic.



“We’ll have to watch it,” Mr. Altman said. “It’s possible it’s playing itself out or reaching some kind of natural limit.”



Still, the rise of premiums over time has resulted in family health plans that can annually cost more than a new car, though often most of the cost is borne by employers. Employees paid on average $5,714, or 31%, of the premiums, for a family plan in 2017, according to Kaiser.

In what should be interpreted as clear-cut evidence of the bill’s job-killing potential, Gary Claxton, a vice president at the foundation, said that the overall cost of insurance appears to be driving small firms, particularly those with low-wage workers, to stop offering health benefits. Indeed, among small employers that didn’t offer health insurance, 44% said the biggest reason for not providing the benefit was its cost. “It’s harder for them to maintain coverage when it’s so expensive,” Mr. Claxton said.

However, among small employers that didn’t provide health coverage, 16% did give workers some money they could use toward purchasing a plan themselves.

None of this should surprise readers, as we've been writing for years that the entire Obamacare system is on the "verge of collapse" as premiums soar, risk pools deteriorate and insurers were pull out of exchanges all around the country leaving many Americans with just a single 'option' for health insurance.

Meanwhile, for an individual worker, the average annual cost of employer coverage was $6,690 in the 2017 survey, up 4% from last year, with employees paying 18% of that.

In another troubling trend highlighted by WSJ, the number of employers offering health insurance as a benefit to employees has been declining even as the labor market has purportedly been tightening. This appears to jive with stagnant hourly earnings, which have shown little movement as most of the new jobs being created in the US are low-level, low-skill and low-pay.

*The Kaiser survey was conducted between January and June of this year and included 2,137 randomly selected employers that responded to the full telephone survey.*
  Reported by Zero Hedge 2 hours ago.

Extreme Drug Cost Variation Between Drug Plans Found In New Comparison Released By The Senior Citizens League

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Survey shows that there is large disparity between various prescriptions among Medicare Part D Plans.

Washington, DC (PRWEB) September 20, 2017

Medicare doesn’t have the authority to negotiate drug prices, leaving millions of older Americans at risk of price gouging for their prescription drugs, according to a new comparison of drug plans by The Senior Citizens League (TSCL). “Because Medicare isn’t negotiating on our behalf, there’s no consistency in drug pricing among drug plans,” states TSCL’s Medicare policy analyst, Mary Johnson, who performed the comparisons using the Medicare website’s Drug Plan Finder. Costs vary enormously between plans. “The disparity in pricing for the same drug can be in the hundreds of dollars,” says Johnson.

TSCL was stunned to learn just how big the disparity in drug prices can be. Johnson compared the highest and lowest prices of the top ten most-prescribed drugs in the U.S. using the Drug Plan Finder found on the Medicare website. The overall average cost difference between the highest - and lowest - cost plans for the top ten drugs was $593 per month. Johnson’s comparison used one zip code as a control since prices vary depending on the part of the country where an individual lives, as well as between plans. In Johnson’s zip code she had 23 plans to compare.

A monthly supply of diabetes drug Lantus Solostar, for example, ranges from a high of $682.00 from the mail - order pharmacy of First Health Part D Value Plus plan to a low of $77.75 from the network retail pharmacies for SilverScript Choice, a difference of $604.25 per month.

“Most people 65 and over take more than one prescription drug, so to get the lowest-costing plan that’s right for you, people need to do a drug plan comparison based on all the drugs they currently take, ” Johnson explains. “In addition, you should carefully compare prices at network retail pharmacies as well as mail order — those prices can also vary significantly,” Johnson notes.

The costs shown in the chart below assumed plan coverage started on September 1, 2017 for a new enrollee. The Medicare Drug Plan Finder cost estimates include premiums, and out-of-pocket cost sharing for 2017. Costs shown are estimates and the actual costs may vary somewhat depending on pharmacy used. The prices illustrated in the chart are likely to change for 2018.

“People should watch for mail from their drug or health plans explaining cost changes for 2018,” Johnson says. You can compare plans and make changes during the Medicare Open Enrollment period, which runs October 15th through December 7th. You can get free one-on-one counseling from your state Health Insurance counselors (SHIP) by contacting your local Area on Aging, or senior centers. Ask for help comparing Medicare drug plans.

TSCL strongly supports legislation that would allow Medicare negotiation of drug costs.

With 1.2 million supporters, The Senior Citizens League is one of the nation’s largest nonpartisan seniors groups. Its mission is to promote and assist members and supporters, to educate and alert senior citizens about their rights and freedoms as U.S. Citizens, and to protect and defend the benefits senior citizens have earned and paid for. The Senior Citizens League is a proud affiliate of The Retired Enlisted Association. Visit http://www.SeniorsLeague.org for more information. Reported by PRWeb 21 hours ago.

Anderson Technologies Receives Human Resource Award

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Manufacturers Association for Plastics Processors Awards Anderson Technologies for Success Coach Program.

Grand Haven, Michigan (PRWEB) September 20, 2017

Anderson Technologies recently received the first-place Human Resource Best Practice award from industry trade group Manufacturers Association for Plastics Processors (MAPP). The MAPP organization awarded this designation to Anderson Technologies based on the innovative “Success Coach” program Anderson Technologies operates in conjunction with other West Michigan employers.

“Anderson Technologies’ purpose statement is to help you to new levels of success. This isn’t just a slogan for our customers, but truly our purpose and goal for all our team members. We want to see every member of our team rise to new levels of success, and we are very willing to provide our employees with the tools to help them succeed,” said company President Glenn Anderson.     

The Success Coach program was launched in 2015 as a new part of the long-running Employee Assistance Center. An on-call success coach is available to all employees, and the coach is also regularly available for on-site meetings during all three shifts. The success coach works confidentially with employees to solve problems and promote personal growth. This partnership has assisted team members with issues including auto repairs, child support, financial literacy, financial assistance, transportation needs, food assistance, health insurance, utilities, and more.

“We want our employees to enjoy coming to work and to be engaged when they are here, and that generally starts with a stable home life. Our Success Coach can help our employees manage the issues they struggle with outside of work. We’re honored to be recognized by our trade organization for this program,” said Anderson.

Anderson Technologies received the award from MAPP after an internal voting process selected the winning submission, and the company will receive further recognition during the 2017 Benchmarking and Best Practices conference in Indianapolis next month. Reported by PRWeb 21 hours ago.

Frontrunning: September 20

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· Fed Poised to Set Portfolio Reduction Plan in Motion (WSJ)
· Dollar close to 2015 lows as conflicted Fed prepares policy update (WSJ)
· The Risk of a New Economic Non-Order (El-Erian)
· A last, last chance: Republicans strain for Obamacare repeal (AP)
· McConnell Won’t Promise Obamacare Repeal Vote as Foes Mobilize (BBG)
· Jimmy Kimmel Rips Into GOP Health Bill for Failing ‘Kimmel Test’ (BBG)
· Stress at UN Not Shared on Wall Street as Stocks Set Records (BBG)
· Trump’s North Korea threat leaves Asia struggling to explain (AP)
· China offers support for strife-torn Venezuela at United Nations (Reuters)
· States Need $645 Billion to Pay Full Health-Care Costs (WSJ)
· Trump Aides Caught in Russia Probe Face Legal Bills and Paranoia (BBG)
· Police arrest high-ranking Catalan officials in raids (Reuters)
· Opioids on the Job Are Overwhelming American Employers (BBG)
· Russia's B&N Bank seeks bailout: central bank (Reuters)
· Toys ‘R’ Us Will Live Because Mattel and Hasbro Can’t Let It Die (BBG)
· From Russia with fuel - North Korean ships may be undermining sanctions (Reuters)
· Two Big Words Show Why U.S. Oil May Finally Be Turning a Corner (BBG)
· How $5 billion of debt caught up with Toys 'R' Us (Reuters)
· Why This Hurricane Season Is So Intense (WSJ)
· Buffett calls pessimists about United States 'out of their mind' (Reuters)
· Uber reviews Asia business amid U.S. bribery probe (Reuters)
· Amazon Is a Lifeline for Retail Workers. (If They Live in the Right City.) (BBG)

 

*Overnight Media Digest*

WSJ

- Central Mexico was rocked by a 7.1 magnitude earthquake that collapsed scores of buildings in Mexico City, killing at least 149 people in a toll that was rising by the hour on Tuesday night. on.wsj.com/2fiIicV

- Walgreens Boots Alliance Inc received regulatory approval to acquire nearly 2,000 stores from Rite Aid Corp , but only after the number of stores to be purchased in the deal was again trimmed to allay antitrust concerns. on.wsj.com/2fhvBiC

- Post Holdings Inc said it plans to buy breakfast-sausage maker Bob Evans Farms Inc for a deal valued at $1.5 billion. on.wsj.com/2fiTSo8

- Ford Motor Co said on Tuesday it will temporarily idle production lines at five North American plants, including three in the U.S. on.wsj.com/2fi80ON

- Creditors of Australia's Ten Network Holdings Ltd accepted an increased offer for the broadcaster from CBS Corp , rejecting a rival proposal from media moguls Bruce Gordon and Lachlan Murdoch. on.wsj.com/2fiJmNU

- Hurricane Maria, with sustained winds near 160 miles per hour, thrashed the eastern Caribbean on Tuesday, killing at least one person on Guadeloupe and devastating the tiny island nation of Dominica, now heads for the Virgin Islands and Puerto Rico. on.wsj.com/2fhwaZM

- U.S. President Donald Trump threatened to annihilate North Korea if the United States has to defend itself or its allies against the Pyongyang regime, delivering the dire warning on Tuesday during his first address to the United Nations General Assembly. on.wsj.com/2fjXo1D

- Myanmar's leader Aung San Suu Kyi said her government would investigate all allegations of human rights abuses in her country, and said Myanmar would allow Rohingya who could prove they had lived in the country to return. on.wsj.com/2xvnMMW

 

FT

At least three audit contracts were lost by KPMG in South Africa as it faces widespread client reviews after it got involved in a high-profile political scandal involving South Africa’s billionaire Gupta family.

In an attempt to prove that a technologically enabled urban environment can improve quality of life, Google’s parent company Alphabet Inc is working on a plan to build a city from the ground up, the executive in charge of its urban innovation business said on Tuesday.

The activist investor fighting Clariant AG has increased its stake to 15.1 percent in the Swiss chemicals group and repeated that it demands to drop the $20 billion planned tie-up with Huntsman Corp of the United States.

The British government has told German Chancellor Angela Merkel to expect Theresa May to offer this week to fill a post-Brexit European Union budget hole of at least 20 billion euros ($23.98 billion), this week.

 

NYT

- In his first address to the U.N. General Assembly, U.S. President Donald Trump brought his confrontational style of leadership to the platform. While his tough words were cheered by Israel and Republican lawmakers, leaders of France, the European Union and the United Nations were sharply critical of his tone. nyti.ms/2xl00lZ

- Eleven governors, including five Republicans, urged the U.S. Senate on Tuesday to reject a new push to dismantle the Affordable Care Act. nyti.ms/2xlrhoE

- Senate Republicans agreed on Tuesday to move forward on a budget that would add to the federal deficit in order to pave the way for a $1.5 trillion tax cut over the next 10 years. nyti.ms/2xecOvz

- In contrast to soaring health insurance premiums in many Affordable Care Act marketplaces, the cost of coverage for vast numbers of people who get insurance through their jobs rose relatively little this year, according to a national survey released Tuesday. nyti.ms/2fyyo3O

- Hurricane Maria is expected to produce more than 12 inches of rainfall, which will cause "life-threatening flash floods and mudslides" in Puerto Rico and the U.S. Virgin Islands, the National Hurricane Center said. nyti.ms/2wFBeJI

 

Canada

THE GLOBE AND MAIL

** Swiss advocacy group, the Bruno Manser Fund pursuing allegations of financial crimes against Ottawa real estate company Sakto Corp, is turning to Ontario's courts to obtain sensitive financial records from three Canadian banks and a major accounting firm. tgam.ca/2hipoj9

** The future of Alimentation Couche Tard Inc remains clouded after its chairman expressed doubts that he and the company's three other founders will be able to maintain control of the retailer as the clock starts ticking on the expiry of their special stock rights. tgam.ca/2hho6Fg

** The Organization for Economic Co-operation and Development raised its projection for growth in Canada this year by 0.4 of a percent point from its earlier forecast, to 3.2 percent. tgam.ca/2hho28u

NATIONAL POST

** The solvent Canadian subsidiary of Toys R Us Inc (IPO-TOYS.N) was granted court-appointed relief on Tuesday to continue operating through the holidays as it disentangles aspects of its business from that of its struggling U.S. parent company. bit.ly/2hgmQC0

** Investigators for Ontario's Ministry of the Environment and Climate Change raided the headquarters of Volkswagen Canada on Tuesday morning, executing a search warrant as part of the massive international investigation into "cheat devices" meant to evade emissions regulations. bit.ly/2hh1X9P

 

Britain

The Times

BHP Billiton is rethinking its membership of Australia's leading mining organisation over differences on climate change. The company committed on Tuesday to publishing a review of its membership of trade associations and explicitly disclosing where there were "material differences" in their positions. (bit.ly/2fxp1kD)

The head of the Treasury select committee has demanded a "full explanation" from the accounting watchdog for its decision to drop an investigation into KPMG's role as auditor of HBOS. (bit.ly/2fzkpe5)

The Guardian

Yoko Ono Lennon has stepped in to rescue the name of her husband from fizzy pop reinvention, taking legal action to halt the sale of a lemonade called John Lemon. The Polish company which sells the beverage has agreed to change its name to On Lemon after legal letters were sent by Ono Lennon's lawyers to the parent company and its distributors across Europe. (bit.ly/2fz1Wy8)

One of Lloyd's of London's largest insurance syndicates is to move its European headquarters to Dublin because of Brexit, Ireland's prime minister has announced. XL Group Ltd, which operates the XL Catlin brand, chose the Irish capital as its preferred location for its principal EU insurance company subject to regulatory approval, said the Irish Industrial Development Authority. (bit.ly/2fz4kVI)

The Telegraph

German dairy business Müller is defying worries about Brexit's impact by revealing plans for 100 million pounds ($135.15 million) of investment in its UK business. (bit.ly/2fz0Kux)

French oil company Total SA is in talks with Alphabet's Google Inc and Microsoft Corp to help develop bespoke artificial intelligence in the energy sector's race to tap digital technologies. (bit.ly/2fyfud9)

Sky News

Chinese insurer Ping An Insurance and consulting firm Oliver Wyman are buying stakes in 10X Future Technologies, the financial technology start-up founded by former Barclays chief Antony Jenkins. (bit.ly/2fxH0Yf)

Wyevale Garden Centres, which is owned by Guy Hands' Terra Firma Capital Partners has struck a 100 million pound debt deal with Hayfin, a specialist lender. (bit.ly/2fyChWr Reported by Zero Hedge 17 hours ago.

State officials crank up pressure to protect MinnesotaCare

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ST. PAUL, Minn. (AP) — Minnesota officials are pressing President Donald Trump’s administration to reverse massive planned cuts to a critical state health care program for low-income residents. The funding cuts for MinnesotaCare were revealed Tuesday as part of the federal government’s imminent approval of a separate program meant to control health insurance premiums for […] Reported by Seattle Times 16 hours ago.

Study: Most states would take a hit from GOP health bill

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WASHINGTON (AP) — An independent study finds most states would take a stiff budgetary hit if the latest Senate GOP health care bill becomes law. The consulting firm Avalere Health says the Graham-Cassidy bill would lead to an overall $215 billion cut to states in federal funding for health insurance, through 2026. Over 20 years the cut would total more than $4 trillion, assuming the legislation passes and remains on the books, said the analysis released Wednesday. The bill limits federal Medicaid funding. The study found winners and losers. Thirty-four states would see cuts by 2026, while 16 would see increases. Reported by SeattlePI.com 15 hours ago.

Md. health exchange fighting lack of federal support

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The Maryland Health Benefit Exchange wants to convince consumers that health insurance can still be affordable, despite spiking premiums and ongoing opposition from federal lawmakers. The state's Affordable Care Act marketplace has recently lost some ground. Enrollments in private health plans for 2017 dropped 3 percent, down from 162,652 in 2016. Dr. Howard Haft, interim executive director of the exchange, said the drop is small, but exchange will certainly be trying to gain some of those consumers… Reported by bizjournals 14 hours ago.

Republicans seem to be confused about what exactly their new healthcare bill would do

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Republicans seem to be confused about what exactly their new healthcare bill would do Republican senators are hurtling toward a vote on a healthcare bill by the end of September. But as they rush to get it to the Senate floor, they seem to be confused about what exactly it does.

Not only is there no score from the nonpartisan Congressional Budget Office (and there won't be a full one before a vote), but many of the GOP senators who support the bill also seem to be unable to articulate its implications.

Jeff Stein of Vox asked nine Republicans about the policy implications were of the new Graham-Cassidy-Heller-Johnson (GCHJ) legislation. Most answers indicated the senators favored a repeal of the Affordable Care Act and a vague notion of handing power to states.

For instance, Sen. Pat Roberts of Kansas compared the GCHJ to "the last stage [coach] out of Dodge City."

"I’m from Dodge City. So it’s the last stage out to do anything," Roberts told Vox. "Restoring decision-making back to the states is always a good idea, but this is not the best possible bill — this is the best bill possible under the circumstances."

Roberts also compared the bill to the final scene of "Thelma and Louise," the film in which the titular character drives a car off a cliff to avoid being captured by police.

"Look, we’re in the back seat of a convertible being driven by Thelma and Louise, and we’re headed toward the canyon," Roberts said.

"So we have to get out of the car, and you have to have a car to get into, and this is the only car there is," he said.

While the bill does provide federal funding to states in upfront block grants instead of matching a percentage of funding after it has been spent, an analysis by healthcare consulting firm Avalere showed the bill would also cut the total amount spent on healthcare by the federal government by $215 billion through 2026.

Additional analysis has showed the bill could loosen protections for people with preexisting conditions and undermine some individual health insurance markets. But the lack of a CBO score provides an absence of official certainty about the legislation's potential impact.

One GOP aide admitted to Axios' Caitlin Owens that the members of the party are unsure about the GCHJ's effects.

"If there was an oral exam on the contents of the proposal, graded on a generous curve, only two Republicans could pass it. And one of them isn't Lindsey Graham," the aide said.

Other senators say they are still evaluating the bill, just 10 days before it would need to be passed through both chambers of Congress to become law.

"What I’m very focused on as we speak is figuring out the dollar amounts, frankly, and the formula and how it impacts my state," Alaska Sen. Dan Sullivan told reporters.

The other Alaska senator, Lisa Murkowski, who is seen as a major swing vote, also told reporters she that what she was trying to "figure out is the impact on my state."

Others argue a more political imperative for the legislation: Republicans talked about repealing Obamacare constantly for seven years, and this attempt will likely be the last chance before the 2018 midterm elections.

"If we do nothing, I think it has a tremendous impact on the 2018 elections," Roberts told Vox. "And whether or not Republicans still maintain control and we have the gavel."

Sen. Chuck Grassley also told Vox that he wanted to return power to the states, but addressed the political issue as well.

"The political answer is that Republicans have promised for seven years that we were going to correct all the things that were wrong with Obamacare, and we failed the first eight months," Grassley said. "This is the last attempt to do what we promised in the election."

*SEE ALSO: Jimmy Kimmel slams new Republican healthcare bill, says its author lied to him*

Join the conversation about this story »

NOW WATCH: Trump touts the 1986 US tax reform law as 'something special' — here's footage of him calling it a 'disaster' in 1991 Reported by Business Insider 12 hours ago.

New study shows the Republican healthcare bill would leave up to 18 million more without insurance by 2019

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New study shows the Republican healthcare bill would leave up to 18 million more without insurance by 2019 The latest push by Republican to repeal and replace Obamacare would leave millions more without health insurance and likely cause costs to rise for Americans in the individual insurance market, according to a study published Wednesday.

The Graham-Cassidy-Heller-Johnson (GCHJ) legislation would change the way the federal government spends billions of dollars in federal healthcare funding. The shift would likely produce massive effects on the coverage and cost of Americans' health insurance.

The left-leaning Commonwealth Fund on Wednesday released an analysis of the GCHJ plan by using previous CBO scores for similar bills and other studies.

Here are the major findings from Commonwealth's Sara Collins:

· *15-18 million more uninsured in 2019:* The bill's repeal of the individual mandate, which compels people to sign up for insurance, would have immediate effects when it goes into place in 2019. Based on previous CBO scores of similar provisions, the jump in the number of people without insurance compared to the current system would be as high as 18 million in the first year.
· *32 million more people uninsured after 2026:* The bill also would shift funding for Obamacare's Medicaid expansion and individual insurance market subsidies into a lump sum given to states every year. The bill, however, simply cuts off those grants after 2026. Commonwealth said the roughly 32 million people projected to be beneficiaries of these programs would simply be cut off after that date.
· *Significantly higher premiums:* Commonwealth also said previous CBO breakdowns of a mandate repeal showed premiums increases of 15% to 20% in the first year. "The majority of that increase would come from the repeal of the mandate penalties: insurers would expect that those who remained in the pool would be the least healthy," Collins wrote.
· *Undercut protections for people with preexisting conditions:* States could apply for waivers to relax some of Obamacare's regulations if it brings down costs. While the bill does say the state has to continue to provide "adequate and affordable" coverage for people with preexisting conditions, Commonwealth said the leeway for the waivers could lead to the elimination of Obamacare's protections for these people. "It would allow states to apply for waivers that would let insurers charge people with health problems higher premiums, and change other ACA consumer protections such as bans on lifetime benefit limits and comprehensive coverage requirements," Commonwealth said.

A Congressional Budget Office score that includes the full effects of the bill on insurance coverage and individuals' cost burdens will not be ready in time for a vote. Republicans can only pass it without being blocked by a Democratic filibuster until the end of the month.

*SEE ALSO: Jimmy Kimmel slams new Republican healthcare bill, says its author lied to him*

Join the conversation about this story »

NOW WATCH: Trump touts the 1986 US tax reform law as 'something special' — here's footage of him calling it a 'disaster' in 1991 Reported by Business Insider 11 hours ago.

Last-ditch Obamacare repeal would be poison

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Graham-Cassidy is another cynical effort that would deny health insurance to millions: Our view

 
 
 
 
 
 
  Reported by USATODAY.com 6 hours ago.

Insurers Come Out Swinging Against New Republican Health Care Bill

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The health insurance industry, which has been cautious about previous bills to repeal the Affordable Care Act, came out sharply against the latest version. Reported by NYTimes.com 4 hours ago.

Insurance rate hike sets record for New Mexico exchange

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SANTA FE, N.M. (AP) — New Mexico insurance regulators have approved the largest increases in health insurance premiums on the state’s subsidized exchange since its creation nearly four years ago. New Mexico Insurance Superintendent John Franchini on Wednesday confirmed agency estimates of average premium increases ranging from 36 percent and 41 percent on mid-level insurance […] Reported by Seattle Times 5 hours ago.

This $700 Billion Public Employee Ticking Time Bomb Is Only 6.7% Funded; Most States Are Under 1%

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This $700 Billion Public Employee Ticking Time Bomb Is Only 6.7% Funded; Most States Are Under 1% We've spent a lot of time of late discussing the inevitable public pension crisis that will eventually wreak havoc on global financial markets.  And while the scale of the public pension underfunding is unprecedented, with estimates ranging from $3 - $8 trillion,* there is another taxpayer-funded retirement benefit that has been promised to union workers over the years that puts pensions to shame...at least on a percentage funded basis.*

Other Post-Employment Benefits (OPEB), like pensions, are a stream of future payments that have been promised to retirees primarily to cover healthcare costs.  However, unlike pensions, most government entities don't even bother to accrue assets for this massive stream of future costs resulting in $700 billion of liabilities that most taxpayer likely didn't even know existed. 

As a study from Pew Charitable Trusts points out today, *the average OPEB plan in the U.S. today is only 6.7% funded* (and that's if you believe their discount rates...so probably figure about half that amount in reality) and many states around the country are even worse.



States paid a total of $20.8 billion in 2015 for non-pension worker retirement benefits, known as other post-employment benefits (OPEB).  Almost all of this money was spent on retiree health care. *The aggregate figure for 2015, the most recent year for which complete data are available, represents an increase of $1.2 billion, or 6 percent, over the previous year.* The 2015 payments covered the cost of current-year benefits and in some states included funding to address OPEB liabilities. *These liabilities—the cost of benefits, in today’s dollars, to be paid in future years—totaled $692 billion in 2015, a 5 percent increase over 2014.*

 

*In 2015, states had $46 billion in assets to meet $692 billion in OPEB liabilities, yielding a funded ratio of 6.7 percent. *The total amount of assets was slightly higher than the reported $44 billion in 2014, though the funding ratio did not change. The average state OPEB funded ratio is low because most states pay for retiree health care benefits on a pay-as-you-go basis, appropriating revenue annually to pay retiree health care costs for that year rather than pre-funding liabilities by setting aside assets to cover the state’s share of future retiree health benefit costs.

 

*State OPEB funded ratios vary widely, from less than 1 percent in 19 states to 92 percent in Arizona.* As Figure 1 shows, only eight have funded ratios over 30 percent. These states typically follow pre-funding policies spelled out in state law. Many of them also make use of the expertise of staff from the state pension system to invest and manage plan assets.



 

Looking at the problem on a relative basis, you find that several states have accrued *net OPEB liabilities totaling in excess of 10% of the personal income generated within their borders.*



*Pew compared states 2015 OPEB liabilities with 2015 state personal income to show these liabilities in relation to the potential resources that states could draw on to cover the liabilities.* The major ratings agencies and other financial research organizations commonly use personal income as a metric to illustrate untapped revenue sources and as an indicator of how flexible states can be in meeting their obligations under changing budget conditions. The research shows significant overall reported OPEB liabilities, but the relative size varies widely. (See Figure 2).

 

The primary driver for the variation in OPEB liabilities is the difference in how states structure health care benefits for retirees.* As a percentage of personal income, the liabilities range from less than 1 percent in 16 states to 16 percent in New Jersey.  Alaska, which has the highest ratio of liabilities to personal income at 42 percent, is a clear outlier among the 50 states because of generous benefit levels that can reach up to 90 percent of premiums for some retired workers. *States that provide eligible retirees a monthly contribution equal to a flat percentage of the health insurance coverage premium report the largest liabilities—and could face the greatest fiscal challenges because their costs automatically increase as plan premiums do.

 

Conversely, those states with fixed-dollar premium subsidies provide a smaller benefit and report lower liabilities. Their exposure to health care cost inflation is also lower, because a fixed-dollar subsidy does not rise with the plan premium.  Lastly, the states that only provide access to a retiree health plan, with no subsidy, have the lowest liabilities as a percentage of personal income.  Although these plans do not make an explicit monthly premium contribution to retirees, many offer retirees a reduced premium through a group rate, which is an implicit subsidy. The Governmental Accounting Standards Board (GASB), the private, independent organization that sets accounting and financial reporting standards for U.S. state and local governments, requires plans to recognize these implicit subsidies in plan financial reporting.



 

Meanwhile, the cost increases of healthcare premiums seem to massively exceed inflation and/or wage growth year after year.



In contrast, a number of states with higher premium contributions—including California and New Jersey—reported significantly greater liabilities beginning in 2014, reflecting increases in assumed future costs.   California’s plan actuary attributed $7.1 billion of the state’s $7.9 billion liability increase to changing demographic assumptions to account for longer retiree life expectancy in that year.New Jersey’s 2014 hike included a 5 percent increase in liabilities caused by changes in its mortality assumptions and a 9 percent jump linked to changes in health care cost assumptions. For states with the largest year-over-year change in OPEB liabilities, changes in assumptions were the largest driver in increasing costs.



But we're sure it's OK, it's not as if there is a massive wave of baby boomers that are about to retire and ask for these benefits to be paid anytime in the near future... Reported by Zero Hedge 4 hours ago.

Illinois submits big Obamacare rate increases to the feds

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Hundreds of thousands of Illinois consumers who buy health insurance on the state's Obamacare exchange will likely see average rates increase by 16 percent to 37 percent next year for the lowest-priced plans, according to a new analysis.

The Illinois Department of Insurance submitted rates to the... Reported by ChicagoTribune 2 hours ago.

Graham-Cassidy bill would cut funding to 34 states, report shows

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The latest Senate Republican drive to dismantle the Affordable Care Act would sharply reduce federal spending on health insurance and cause 34 states to lose such funding, according to an analysis that details the checkerboard of winners and losers the plan would create. Reported by Denver Post 18 hours ago.

Did insurance mismanagement lead to death of this former Newark cop?

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The city's roll out of a new health insurance plan for all workers left some retirees without notice -- and no insurance -- they said. Reported by NJ.com 18 hours ago.

To justify a 35% rate hike, Anthem expects Californians to use a lot more drugs next year

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Health insurance giant Anthem predicts Californians will pop a lot more pills next year.

To make the case for a hefty premium hike in the state’s individual insurance market, Anthem Blue Cross has forecast a 30% jump in prescription drug costs for 2018, reflecting not just price hikes but rising... Reported by L.A. Times 17 hours ago.

The hidden consensus on health insurance subsidies

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There are plenty of things wrong with the Graham-Cassidy-Heller-Johnson proposal to overhaul Obamacare (and Medicaid, while it’s at it), from its cockamamie approach to helping people not insured by their employers to its blithe indifference to the rising cost of medical care.

But give sponsoring... Reported by L.A. Times 16 hours ago.

GOP senator admits new healthcare bill could harm people with preexisting conditions, but says it won't happen

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GOP senator admits new healthcare bill could harm people with preexisting conditions, but says it won't happen One of the most hotly debated elements of the newest Republican attempt to repeal and replace the Affordable Care Act has come over the bill's protections for people with preexisting conditions.

While the authors of the Graham-Cassidy-Heller-Johnson plan say the bill protects people with preexisting conditions, critics and health policy experts argue that it leaves openings for those people to get charged much more for insurance.

One of the bill's authors, Sen. Bill Cassidy of Louisiana, got in a Twitter fight with NPR over the issue.

One GOP senator on Thursday, however, seemed to suggest that the new bill could leave sick Americans worse off. Sen. Jeff Flake of Arizona, a Republican supporter of the Graham-Cassidy bill, said on MSNBC's "Morning Joe" Thursday that the new plan could allow states to undermine protections for people with preexisting condition. He argued, however, that that wouldn't end up happening.

"There are provisions in there, I've heard it said, that would allow a race to the bottom and states to deny coverage or allow insurance companies to deny coverage [based] on preexisting conditions," Flake said. "If they're able to, de jour, de facto, they won't be able to."

Many policy experts have argued that the waivers created in the Graham-Cassidy bill could allow states to remove some of the regulations that protect people with preexisting conditions under Obamacare — as long as it lowers overall costs.

The legislation includes a line that states must show how their new system "intends to maintain access to adequate and affordable health insurance coverage for individuals with preexisting conditions."

The vague language, according to healthcare analysts and industry groups, gives significant leeway to the Department of Health and Human Services and states to determine the definition of "adequate and affordable." 

This could, in theory, bring down the overall cost for the system as sicker, more expensive to cover people would effectively be priced out of the system. Lowering the overall costs for insurers would allow them to lower premiums. It would, however, undermine the protections for sick people.

Flake acknowledged that possibility, but said it would never happen because states would not pass a law or request a waiver that included such a provision.

"In reality, is any governor or state legislature going to deny coverage based on preexisting conditions?" Flake asked.

"Yes, yes they are," host Joe Scarborough said in response.

*SEE ALSO: 'I'm not a serious person?': Jimmy Kimmel escalates his war against the Republican healthcare bill*

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NOW WATCH: Trump touts the 1986 US tax reform law as 'something special' — here's footage of him calling it a 'disaster' in 1991 Reported by Business Insider 13 hours ago.
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