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Maine's governor is trying to block the state's Medicaid expansion the day after voters overwhelmingly supported it

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Maine's governor is trying to block the state's Medicaid expansion the day after voters overwhelmingly supported it· *Maine voters approved a measure to expand Medicaid in the state by 59% to 41%.*
· *Republican Gov. Paul LePage, who has repeatedly blocked attempts to expand the program, said Wednesday he would not allow the measure to become law until the legislature determines that it would be paid for in full.*
· *The expansion would allow around 80,000 low-income Mainers access to health insurance.*

--------------------The day after voters in Maine overwhelmingly supported the expansion of the Medicaid program by a wide margin, the state's governor said he would block its immediate implementation.

Gov. Paul LePage said in a statement Wednesday that he would not allow implementation until the state legislature makes certain changes to its budget.

"Credit agencies are predicting that this fiscally irresponsible Medicaid expansion will be ruinous to Maine’s budget," LePage said. "Therefore, my administration will not implement Medicaid expansion until it has been fully funded by the Legislature at the levels DHHS has calculated, and I will not support increasing taxes on Maine families, raiding the rainy day fund or reducing services to our elderly or disabled."

Overall, 59% of Maine voters agreed with a ballot measure proposing to expand Medicaid, by a margin of over 60,000 people.

The change would allow people making up to 138% of the federal poverty level to obtain health coverage under the program — currently in the state, Medicaid is available to people making up to the poverty line. According to estimates, this would allow 70,000 to 80,000 more lower-income Mainers to obtain insurance coverage.

LePage has a history of blocking Medicaid expansion in the state, vetoing bills to expand the program four different times.

During the run up to the vote, LePage argued that the expansion would be a significant financial burden on the state, saying that it could cost upward of $100 million a year. Maine's Office of Fiscal and Program Review, however, found that the federal government would shoulder $525 million in costs for the program a year and the state would pay just over $55 million a year.

It is unclear if LePage actually has the ability to block the program, since all adopted ballot measures become law in Maine 45 days after passage. The expansion would take effect in August 2018.

*SEE ALSO: Top senator says Trump told Democrats on a call that 'rich people get hurt' in the GOP tax plan*

Join the conversation about this story »

NOW WATCH: Here’s why people on Twitter think Melania Trump was replaced by a body double — and why they’re wrong Reported by Business Insider 1 day ago.

Jimmy Kimmel ‘Thanks’ Trump for Record Surge in Obamacare Enrollment (Video)

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Today marks the one-year anniversary of Donald Trump victory over Hillary Clinton in the 2016 election, and Jimmy Kimmel wants the president and his supporters to know that he’s come around on Trump’s health care plan. Well, kinda.

At the top of Tuesday’s “Jimmy Kimmel Live,” the ABC late-night host said that “instead of screaming helplessly” today — as several Trump haters have planned to on social media — you can do something useful, like sign up for “TrumpCare.”

Kimmel “thanked” Trump for the record 200,000-plus people who signed up for “TrumpCare” plans on the first day of open enrollment on November 1 — which the Washington Post reported to be twice as many as last year.

*Also Read:* Jennifer Lawrence Actually Slayed Her 'Jimmy Kimmel Live' Monologue (Video)

In all honesty, ‘TrumpCare,” is really just the Affordable Care Act, and Kimmel was trying to direct Trump supporters to the Healthcare.gov website so they could enroll in Obamacare, which is still hanging tough thanks to Republicans’ continuous failure to repeal it.

“I have spoken a lot about healthcare on this show, and been critical of what Trump and half of Congress is trying to do,” Kimmel said. “Enrollment just started on the new health care plan, and it actually has a lot of good stuff in it. It covers pre-existing conditions, it has no lifetime caps, you can keep your kids on it, and it’s also surprisingly affordable, especially for people making under $50,000.”

“So, even if you don’t support President Trump, watch this, keep an open mind, and if you don’t have health insurance go to the website and sign up,” Kimmel said, before showing a fake add for TrumpCare, which is, again, actually Obamacare.

*Also Read:* 'Kimmel' Guest Host Channing Tatum Dances His Way Into Wednesday's Monologue (Video)

Check out Kimmel’s amazing pitch to Trump supporters in the video above.

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Watch George Clooney Troll Jimmy Kimmel With Surprise Visit From 'Manny' Matt Damon (Video) Reported by The Wrap 1 day ago.

90% of workers could botch their health insurance and open enrollment picks

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Less than 10% of employees update their workplace benefits during annual open enrollment. More than half say their lack of attention costs them money.

 
 
 
 
 
 
  Reported by USATODAY.com 1 day ago.

Blue Cross: Idaho could face risk under self-insurance plan

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BOISE, Idaho (AP) — Health insurance officials are warning lawmakers that switching public employees to a self-insurance model could place the state at a greater financial risk. Dave Jeppesen, chief marketing officer with the Blue Cross of Idaho, said Wednesday that Idaho’s existing program allows the state the flexibility to decide what health benefits it […] Reported by Seattle Times 1 day ago.

CBO: Repeal of Individual Mandate Would Increase Uninsured, Premiums

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The agency found that health insurance premiums would rise by about 10 percent in most years over the next decade in the individual market created by the Affordable Care Act, former Democratic President Barack Obama's signature domestic policy achievement. Reported by Newsmax 1 day ago.

Healthcare Spending Now Accounts For Almost One-Fifth Of The Entire US Economy

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Healthcare Spending Now Accounts For Almost One-Fifth Of The Entire US Economy Authored by Michael Snyder via The American Dream blog,

*Everybody agrees that healthcare costs are way too high. * Back in 1960, healthcare spending accounted for approximately 5 percent of GDP, and by 2020 it is being projected that healthcare spending will account for 20 percent of GDP.  And when you break those numbers down into actual dollars, they become even more staggering.  Back in 1960, an average of $146 was spent on healthcare per person for the entire year, but today that number has skyrocketed to $9,990.  *On a per capita basis, we spend far more than anyone else in the world on healthcare.*

  In fact, we spend almost twice as much as most other industrialized nations on a per capita basis.  *Something has gone terribly wrong, and we desperately need to get this fixed.*

*Just between the years of 1996 and 2013, our spending on healthcare rose by a whopping 900 billion dollars,* and it is estimated that healthcare spending now *accounts for nearly one-fifth of the entire U.S. economy*.  The following comes from the Daily Mail…



US healthcare spending rocketed $900 billion between 1996 and 2013, staggering new data reveal.

 

Americans spend more money on healthcare than any other population, and increasingly so.

 

By 2013, total healthcare spending hit $2.1 trillion, according to the study published today in the Journal of the American Medical Association. The researchers say that figure has now likely soared to more than $3.2 trillion, which equates to 18 percent of the country’s economy.



*So why is healthcare spending going up so much?*

Well, the truth is that our population is aging, obesity is certainly on the rise, and medical care has become much more expensive.  In addition, we should acknowledge there are a couple of other major factors that we should acknowledge as well…



First, the United States relies on company-sponsored private health insurance. The government created programs like Medicare and Medicaid to help those without insurance. These programs spurred demand for health care services. That gave providers the ability to raise prices. Other efforts to reform health care and cut costs raised them instead.

 

Second, chronic illnesses, such as diabetes and heart disease, have increased. They are responsible for 85 percent of health care costs. Almost half of all Americans have at least one of them. They are expensive and difficult to treat.

 

As a result, the sickest 5 percent of the population consume 50 percent of total health care costs. The healthiest 50 percent only consume 3 percent of the nation’s health care costs.



*Healthcare costs are only expected to rise even more in the years ahead, and so we desperately need to reform our system.*

Because as it is, health insurance premiums are becoming completely unaffordable.  According to CNBC, *health insurance premiums for plans purchased through an employer will be higher than ever next year…*



Next year, employers expect to spend $8,527 per enrolled employee, according to data form the National Business Group on Health. Meanwhile, workers themselves will contribute an average of $2,752 toward their premiums.



And for those that have to purchase their own health insurance, things are even worse.  In fact, it is being projected that the average rate increase for Obamacare plans will be 37 percent in 2018.

When I get elected to Congress, I am going to make repealing Obamacare and fixing our broken healthcare system one of my highest priorities.

*We need a system that is focused on the relationship between doctors and patients.  Compared to the rest of the world, we spend way too much on administrative costs, and we desperately need legal reform.  I would like to see Congress legalize the kind of association buying groups that Rand Paul has been proposing, and I would like to see exciting new models such as direct primary care used much more extensively.*

There is no way that we should be spending nearly twice as much on healthcare as everyone else in the industrialized world on a per capita basis.  We must streamline the system, and we need to start using some common sense.

*Unfortunately, common sense is in short supply in Washington D.C. these days, but hopefully we can start to change that.*

*  *  *

Michael Snyder is a Republican candidate for Congress in Idaho’s First Congressional District, and you can learn how you can get involved in the campaign on his official website. His new book entitled “Living A Life That Really Matters” is available in paperback and for the Kindle on Amazon.com. Reported by Zero Hedge 1 day ago.

OCBC puts health insurance on the mobile

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Digitalising the way customers buy health insurance products, OCBC Bank has again launched a first i... Reported by Finextra 14 hours ago.

Rising Obamacare costs frighten some early retirees

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Don and Debra Clark of Springfield, Missouri, are glad they have health insurance. Don is 56 and Debra is 58. The Clarks say they know the risk of an unexpected illness or medical event is rising as they age and they must have coverage. Reported by CNNMoney 12 hours ago.

Walkingspree and VIA Partner for Better Employee Health

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A recent report based on a series of interactive data compiled for San Antonio’s public transportation entity by their health insurance carrier, highlighted some astounding results for employees that took part in Walkingspree’s activity program. Walkingspree participants showed major health claim cost decreases, less hospital visits and shorter hospital stays than those that did not participate.

SAN ANTONIO, Texas (PRWEB) November 09, 2017

Walkingspree, a nationally-recognized corporate wellness and activity solutions provider based in San Antonio, Texas, is pleased to announce that its partner, VIA Metropolitan Transit, has successfully concluded the “Thrive Wellness Program,” with positive results. A program report, compiled by Aetna, highlights the many benefits that have been provided to participating employees’ overall work-life balance, based on a series of interactive data.

Hospital utilization rates among the Walkingspree group showed significant decreases versus non-participants. An overall decrease in inpatient visits from 2015 to 2016 is apparent within the Walkingspree participant group. Cumulative totals of the two groups indicate a higher amount of total admits and surgeries, as well longer lengths of stays among non-participants, compared to the Wellness Group in both 2015 and 2016.

“We are delighted that VIA was able to achieve this. In 2015 and 2016, Walkingspree participants helped reduce medical claim costs per employee, per year at VIA, compared with those who did not take part,” said Walkingspree Chief Revenue Officer Nathan Pickle. “Prevention in the form of wellness may beneficially mitigate costs associated with health care, and support a healthier, more productive workforce.”

About Walkingspree
Walkingspree specializes in custom walking programs where employees get engaged and energized while employers reduce health care claims. We provide wellness solutions for companies of all sizes and currently support some of the nation’s most renowned fitness monitoring brands including Fitbit, Garmin, Apple Watch and a host of other wearables and smartphones. Members receive a highly intuitive and customizable mobile app as well as a web based real-time monitoring platform. To find out how we can assist your company, please check out http://www.walkingspree.com. Reported by PRWeb 11 hours ago.

Blame Game Over Rising Health-Insurance Premiums Begins

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The partisan battle over the fate of the Affordable Care Act is starting to hit Americans’ pocketbooks as open enrollment seasons begins, sparking a confrontation between Democrats and Republicans over who gets the blame. Reported by Wall Street Journal 11 hours ago.

Frontrunning: November 9

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· In China, Trump Cajoles Xi With Tough Talk, Flattery (WSJ)
· Trump’s Flashy $250 Billion China Haul Has Little Substance (BBG)
· Blame Game Over Rising Health-Insurance Premiums Begins (WSJ)
· How to End Our Long National Tax Nightmare (BBG)
· Trump Says Democrats Will Like Senate Tax Plan Over House Version (WSJ)
· Venezuela's PDVSA misses debt payments to India's top oil producer (Reuters)
· Britain, Russia clash over Syria at chemical weapons body (Reuters)
· Coinbase Escalates Showdown on U.S. Tax Probe as Bitcoin Surges (BBG)
· Saudi graft inquiry spreads beyond borders as UAE examines bank accounts (Reuters)
· How an American Family Escaped From Amazon Pirates (WSJ)
· Britain to provide Saudi Aramco with $2 billion credit guarantees (Reuters)
· U.S. Proposes Freezing Mexican Trucks Out of New Nafta (BBG)
· Exclusive: Iran's Revolutionary Guards arrest more dual nationals (Reuters)
· Behind the Fall of a New York State Pension Fund Executive (WSJ)
· Want to Stay Safe While Traveling? Wear a Rolex (BBG)
· Wal-Mart gears up to compete on Black Friday (Reuters)
· Macy's posts bigger-than-expected comparable sales drop (Reuters)
· In 2017, Investors Can Either Buy Bubbles or Be Left Far Behind (BBG)
· The Many Ways Amazon and Others Could Storm the Gates of Finance (BBG)
· This French Bank Is Thriving on Exotic Deals (BBG)
· Why Is U.S. Wage Growth So Low? It's All About the Top 80% (BBG)
· Republicans Take Stock After Election Losses (WSJ)

 

*Overnight Media Digest*

WSJ

- U.S. antitrust regulators are pressing for major changes to AT&T Inc's proposed takeover of Time Warner Inc , demands that threaten one of the biggest media deals ever, people familiar with the matter said. on.wsj.com/2jdNwIv

- Federal prosecutors are investigating Carl Icahn's former role advising U.S. President Donald Trump and the activist investor's attempts to change an environmental rule that he opposed. on.wsj.com/2jbwbzU

- Twenty-First Century Fox Inc said profit and revenue rose in the most recent quarter, as higher fees for its cable networks helped offset continued weakness at local TV stations and its film studio. on.wsj.com/2ja5TOi

- China's President Xi Jinping welcomed U.S. President Donald Trump to China with a series of business deals and a private tour of the Forbidden City, seeking to impress the U.S. president even as he stepped up pressure on Beijing to curb financial ties with North Korea. The deals, valued at an estimated $9 billion, were designed to set a positive tone for Trump's visit. on.wsj.com/2jejVOR

- U.S. House lawmakers on Wednesday prepared changes to the GOP tax bill to fill a revenue hole of at least $74 billion, as Senate Republicans were set to release their own plan with significant differences that the GOP will eventually have to resolve to complete its tax overhaul. on.wsj.com/2jbH9FC

- Saudi authorities have frozen the bank accounts of the kingdom's former crown prince, Mohammed bin Nayef, the latest royal targeted in a corruption crackdown carried out by a Saudi leadership seeking to consolidate power. on.wsj.com/2jby5R4

 

FT

* Former Yahoo Chief Executive Marissa Mayer apologised on Wednesday for two massive data breaches at the internet company, blaming Russian agents for at least one of them, at a hearing on the growing number of cyber attacks on major U.S. companies.

* British aid minister Priti Patel was forced from office on Wednesday over undisclosed meetings with Israeli officials after Prime Minister Theresa May sought to reassert her diminished authority as she negotiates Brexit.

* U.S. antitrust regulators and AT&T Inc sparred on Wednesday over whether the wireless carrier would be required to sell Time Warner Inc’s CNN cable network as a condition of approval of its deal to buy the media company.

 

NYT

- Russian Finance minister Anton Siluanov announced that Venezuela and Russia have agreed to the restructuring of roughly $3 billion in Kremlin loans. nyti.ms/2zuQe0n

- Senate Republicans, under pressure to pass a sweeping tax rewrite before year's end, are expected to unveil legislation on Thursday that would eliminate the ability of people to deduct state and local taxes but would stop short of fully repealing the estate tax, according to lobbyists and other people familiar with the bill. nyti.ms/2zw70fp

- AT&T Inc's pending $85.4 billion acquisition of Time Warner Inc could hinge on whether they agree to sell Turner Broadcasting, the group of cable channels that includes CNN. nyti.ms/2zudECU

- Apple Inc has secured one of the most sought-after new projects in television, landing the rights to a new drama centered on a morning TV show and starring Reese Witherspoon and Jennifer Aniston, the company announced on Wednesday. nyti.ms/2ztqNvR

- Responding to what one travel expert categorized as "a wake-up call," TripAdvisor Inc has begun placing symbols next to hotels and resorts that have been identified as locations of sexual assault and other major concerns. nyti.ms/2ztYOML

 

Britain

The Times

British jobs would be put at risk by government plans not to match the EU's tough stance on dumped imports after Brexit, the steel industry warned. bit.ly/2hn9NCX

U.S. Hedge fund Kerrisdale Capital has taken a short position in drugmaker Prothena Corp Plc, a company backed by UK investor Neil Woodford, claiming that a key treatment is likely to prove a failure. bit.ly/2hlnu5z

The Guardian

Struggling care home provider Four Seasons, which is responsible for 17,000 elderly and vulnerable people, is set to be taken over by a U.S. hedge fund Terra Firma in a complex rescue deal being closely monitored by regulators. bit.ly/2hmBGeA

Uber Technologies Inc has taken a step forward in its plan to make autonomous "flying taxis" a reality, signing a contract with NASA to develop the software to manage them. bit.ly/2hlOqC0

The Telegraph

AT&T Inc Chief Executive Randall Stephenson said he had "no intention" of selling CNN and had "never offered" to, after reports emerged the media company was told by regulators a sale was needed to secure approval for its acquisition of Time Warner Inc. bit.ly/2hmzd3N

Financial Conduct Authority said it is now scanning the insurance market for anti-competitive behaviour just as London fights to retain its status as a financial hub post-Brexit. bit.ly/2hmdU2o

Sky News

JPMorgan Chase & Co Chief Executive Jamie Dimon held private talks with British Prime Minister Theresa May and finance minister Philip Hammond, according to Sky News. bit.ly/2hlPgPa

Priti Patel has offered the Prime Minister a "fulsome apology" as she resigned as International Development Secretary over secret foreign meetings. bit.ly/2hm1Uxx

The Independent

Patrick Vallance, president of research and development at the pharmaceutical company GlaxoSmithKline Plc has been appointed as the British Government's chief scientific advisor. ind.pn/2hkZVto  Reported by Zero Hedge 10 hours ago.

Short-Term Health Insurance is Still Affordable and Popular Among Younger Adults, According to eHealth Analysis

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Short-Term Health Insurance is Still Affordable and Popular Among Younger Adults, According to eHealth Analysis MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--eHealth data show that short-term health insurance plans are affordable and popular among younger adults. Reported by Business Wire 10 hours ago.

Amerigroup and Arlan’s Market Collaborate to Help Texans during Medicare Annual Enrollment Period

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AUSTIN, Texas--(BUSINESS WIRE)--Amerigroup and Arlan’s Market are working together to help Medicare-eligible Texans understand their 2018 health insurance options during the Annual Election Period (AEP) occurring now through December 7. “People eligible for Medicare can find the annual enrollment process confusing because there are a lot of options and things to consider when choosing a plan, like their health status, plan benefits, and out-of-pocket costs,” said Josh Martin, President of the c Reported by Business Wire 10 hours ago.

5 tips to help Texans prepare for open enrollment and save on health care costs

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More than 16 million Texans will soon select or switch their health benefits plan during open enrollment, so now is the time to prepare for that important decision that usually happens once a year. More than 70 percent of Americans say they are prepared for open enrollment, yet most people struggle to understand basic health insurance terms, according to a recent UnitedHealthcare survey. Only 9 percent of survey respondents could successfully define all four basic health insurance concepts: plan… Reported by bizjournals 9 hours ago.

Open Enrollment Season In Full Swing at 40 Square Cooperative Solutions

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Member-owned health plan cooperative launched six self-funded plans for Minnesota farmer families with the Cigna network

SAINT PAUL, Minn. (PRWEB) November 09, 2017

40 Square Cooperative Solutions (40 Square) released its health plan quote and enrollment platform on November 1, the start of the health insurance open enrollment season. Premium quotes and online enrollment are available through the co-op website or with the assistance of an insurance agent that has partnered with 40 Square.

With the departure of multiple insurance carriers in rural Minnesota counties in 2016, the state legislature recognized the need for a new health plan solution for farm families, and 40 Square Cooperative Solutions began organizing to get the co-op ready for the 2018 open enrollment period, which runs from now through December 15, with effective dates of coverage beginning January 1, 2018.

“We have been working toward this moment for more than 15 years, and are thrilled to offer Minnesota farmers a health plan that not only has coverage in rural areas through the Cigna provider network, but gives them ownership of their health care,” said Charlene Vrieze, project manager of 40 Square. “The goal for the website was to build a platform that emphasizes ease of use, trust, and transparency.”

There are six self-funded plan options available, in addition to dental, vision and voluntary term life benefits. Interested farm families must purchase voting stock and common stock in 40 Square to become a member of the 40 Square health plan consortium. Both organizations are governed by a separate board of directors, who are elected by 40 Square members.

“Minnesota farm families have struggled far too long with health plan rate increases and limited network providers. 40 Square’s mission and purpose is to provide farmers with member-owned and governed health coverage access, health care education, and wellness programs to keep the backbone of Minnesota’s rural community strong,” said Vrieze.

For additional information regarding 40 Square, please visit 40square.coop or email info(at)40square(dot)coop.

About 40 Square Cooperative Solutions

40 Square Cooperative Solutions is a health plan cooperative providing Minnesota farm families the control to manage their health care. The over 15-year effort was founded by Cooperative Network, the Minnesota and Wisconsin state trade association of cooperatives, and United Farmers Cooperative (UFC), an agricultural supply cooperative based in Winthrop, Minnesota. Reported by PRWeb 8 hours ago.

2017 CFO of the Year: Jay Matushak, Blue Cross and Blue Shield of Minnesota

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When Jay Matushak joined Blue Cross and Blue Shield of Minnesota in 2015, the insurance provider was experiencing a wave of uncertainty after the rollout of the Affordable Care Act’s health insurance marketplaces. That year, the company experienced a loss of $265 million on individual health plans. Matushak helped slow the losses and led new initiatives across the company to get it back to steadier ground. In 2016, Matushak cut the losses on individual health plans by nearly half. He introduced… Reported by bizjournals 7 hours ago.

Goldman Still Sees 65% Chance Of Tax Reform Passing; Expects Senate To Make These Changes...

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Goldman Still Sees 65% Chance Of Tax Reform Passing; Expects Senate To Make These Changes... After a wave of GOP defections in recent days and waffling on timing, Goldman's economics team apparently still sees a 65% chance of a tax reform bill being enacted by *"early 2018,"* but warns that the final bill may look nothing like the one recently proposed by the House.

As we pointed out yesterday (see: The Republican Tax Plan Will Crush These Housing Markets), Goldman fully expects the Washington D.C. swamp, led by realtors and homebuilders in this case, to attack various components of the House's bill, including efforts to slash the mortgage deduction cap, but don't think those efforts will be enough to tank tax reform altogether.



*Political opposition to the bill seems likely to result in changes to the bill, particularly in the Senate, but it is less likely to block enactment of a tax bill altogether.* The National Association of Realtors (NAR), National Association of Home Builders (NAHB), National Federation of Independent Businesses (NFIB), and anti-tax groups such as the Club for Growth have opposed the current House proposal for various reasons.

 

*That said, we believe this is more likely to result in changes to the bill in the Senate rather than a failure to pass a tax bill at all. *

 

These changes—for example, raising the proposed principal cap on mortgage interest deductibility and potentially making the treatment of pass-through income more generous than the initial House proposal—could crowd out other priorities, but don’t seem likely to block passage entirely. There is also a more fundamental political motivation, which is that many congressional Republicans would like to enact at least one piece of major legislation prior to the 2018 midterm election.



So, what does Goldman see changing in the Senate bill?  Here's a recap:



*Mortgage Deduction:* We *expect the Senate to be more generous on mortgage interest* than the House’s proposed $500k cap on principal on which interest can be deducted. This might involve an initial proposal to set the principal cap at $750k, or possibly keeping the deduction as it is today (principal is deductible on mortgage principal of $1 million and home equity debt of $100k). A $750k cap might raise about one-quarter of the roughly $300bn over 10 years the $500k limitation would raise.

 

*SALT:* By contrast, we *expect the Senate to be less generous on state and local tax deductions,* potentially proposing to eliminate all state and local tax deductibility, whereas the House has proposed to allow up to $10k in property taxes to be deducted (no state/local income taxes would be deductible).

 

*Estate tax repeal:* The House proposal would double the amount exempted from the estate tax for the next five years, and then repeal the tax altogether after 2023. *We do not expect estate tax repeal to have adequate support in the Senate, *which might free up a bit less than $100bn (compared with the House bill) for other purposes.

 

*The corporate tax rate*: The *Senate’s version of tax reform legislation looks likely to propose a 20% corporate tax rate, but we continue to believe it is likely this will be phased in rather than taking effect immediately in 2018.* Our expectation is that the final House-Senate compromise will phase in the corporate rate reduction because of fiscal constraints; we also believe there is a good chance the rate will be higher than 20% and that it will potentially end up around 25%.

 

*Interest deductibility:* The House has proposed limiting corporate interest deductibility to 30% of EBITDA. It is *unclear what approach the Senate will take on interest deductibility, but some limitation looks likely to be proposed*, in our view. One alternative that has been discussed in the past is to limit the deduction to a share of overall interest expense (e.g., 70% or 80% of interest could be deducted). This would have the advantage of reducing the disruption to the most highly levered firms, and might also potentially allow for grandfathering of existing debt.

 

*Base-erosion measures:* The House proposal has a few measures aimed at preventing the shifting of corporate profits from the US to other lower-tax countries. One is a 10% minimum tax on foreign earnings (more precisely, 50% of foreign profits above a normal return on capital would be taxed as US income at the 20% corporate rate, for an effective rate of up to 10%). A second measure would impose a 20% excise tax on related-party cross-border transactions (discussed below). We expect the Senate to include a measure aimed at preventing base-erosion in the Senate bill as well, potentially including the foreign minimum tax, but expect the Senate to take a different approach than the proposed 20% excise tax, which has already changed in the House in any case.



Meanwhile, rumors have surfaced of late that suggest the Trump administration *delayed an executive order repealing Obamacare's individual mandate *on hopes that it could be wrapped into the Senate's tax reform bill...Goldman is skeptical...



*Probably not, but it looks like it could be included in the House bill before it passes.* There are two reasons this could be an attractive option. First, many Republican voters see ACA repeal to be at least as high a priority as tax reform, so combining the issues would allow Republican leaders to take action on aspects of both. *Second, mandate repeal has been estimated in the past to reduce the deficit by more than $300bn over ten years because it would reduce enrollment in subsidized health insurance.* This would allow tax writers to fill the hole that has been created by scaling back other revenue raisers already, and the further scaling back that is likely to occur as the process moves forward. H*owever, there is an even stronger argument against including mandate repeal, which is simply that repeal of the individual and employer mandate—so-called “skinny repeal”—failed to pass the Senate over the summer and including it in tax reform could simply sink both efforts.* So if it is included in an early version of tax reform, repeal still seems likely to be dropped before tax reform becomes law.



Of course, *the much bigger issue is whether the Senate will be able to overcome a very narrow Republican majority while passing a bill that complies with "Reconciliation Rules" and the "Byrd Rule."*



Yes, this is one of the reasons we expect the bill to change. *“Reconciliation” bills need only 51 votes to pass the Senate if they remain within fiscal targets in the budget resolution* and do not violate any existing Senate rules. A violation takes 60 votes (and therefore Democratic support) to overcome. The *recent budget resolution allows for a tax cut of up to $1.5 trillion over ten years.* After recent changes to the bill in the House, the bill is now estimated to increase the deficit by $1.57 trillion over ten years.* A second procedural obstacle is the Senate’s “Byrd Rule”, which prohibits reconciliation legislation from raising the deficit after ten years. *The House provisions are mostly permanent, which would violate the Byrd Rule. This leaves the Senate with two options: offset the cost of tax relief with base-broadening or other measures after ten years, or make the tax relief temporary. *We expect the Senate bill to do some of each by partially offsetting tax reductions and then allowing whatever has not been offset to expire. *This means that the more structural elements of the bill would likely be permanent, such as the limitation on individual itemized deductions and the shift to a territorial tax system for foreign corporate income, while at least some of the tax relief, including individual and corporate rate reductions, would expire after ten years.



So what say you?  *Will tax reform mark the Trump administration's first major legislative victory or will John McCain spoil the party once again?* Reported by Zero Hedge 7 hours ago.

'Obamacare' sign-ups top 600k in first week

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WASHINGTON (AP) — The government says more than 600,000 people signed up for Affordable Care Act coverage in the first week of open enrollment season, and nearly 8 in 10 of those were current customers renewing their coverage. About 23 percent were new consumers, according to figures released Thursday by the Centers for Medicare and Medicaid Services. The numbers are being closely watched because of the Trump administration's open disdain for the health insurance program enacted under former President Barack Obama. So far, sign-ups seem to be running about the same pace as last year, despite Trump administration cutbacks in advertising and enrollment assistance for consumers. The numbers cover the period Nov 1-4. The HealthCare. Reported by SeattlePI.com 7 hours ago.

How Nixing The ACA's Individual Mandate Could Affect Federal Deficit

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How Nixing The ACA's Individual Mandate Could Affect Federal Deficit Watch VideoGetting rid of the Affordable Care Act's individual mandate could reduce federal budget deficits by about $338 billion by 2027 — but that savings still comes at a cost.

According to the Congressional Budget Office's new estimates, deficits would shrink compared with the current law. But it also says repealing the mandate would lead to 4 million fewer people insured in 2019 and 13 million fewer in 2027.

CBO says average premiums in the nongroup market would also increase by about 10 percent "in most years of the decade."

The CBO's previous estimate from December predicted repealing the mandate would reduce the deficit by $416 billion and would lead to about 16 million fewer Americans insured in 2026.

The differences stem from a couple things: Healthier people would be less likely to buy insurance and, in turn, higher premiums would turn off even more people.

In tweets from Nov. 1, President Donald Trump suggested lawmakers repeal the mandate as part of the tax reform effort. If that doesn't happen, the White House reportedly has a backup executive order to weaken the mandate.

That said, the Affordable Care Act — including the individual mandate — is still the law of the land. The IRS requires people to say if they had health insurance all year. If they say they didn't, they could face a penalty.

Open enrollment for the federal insurance marketplace for 2018 runs from Nov. 1, 2017, until Dec. 15. 2017. Reported by Newsy 6 hours ago.

Open enrollment: Is a high-deductible health insurance plan right for you?

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An HDHP can save you a ton of money in premiums -- but these plans aren't for everyone.

 
 
 
 
 
 
  Reported by USATODAY.com 6 hours ago.
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