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Good morning Deborah Wilkinson May 5, 2017

Leading the News

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House Passes American Health Care Act.

On its front page, the New York Times Share to FacebookShare to Twitter (5/4, A1, Kaplan, Pear, Subscription Publication) reports that on Thursday, the House “narrowly approved” the American Health Care Act by a vote of 217-213, “as Republicans recovered from their earlier failures and moved a step closer to delivering their promise to reshape American health care without mandated insurance coverage.” The article says no Democrats voted for the bill. They were joined by 20 Republicans. The Times adds that this passage “keeps alive the Republican dream to unwind” the Affordable Care Act. But the bill “faces profound uncertainty in the Senate, where the legislation’s steep spending cuts will almost certainly be moderated.”

        USA Today Share to FacebookShare to Twitter (5/4, Shesgreen) reports that the vote “reflected sharp divisions over the GOP’s proposal, which is a long way from becoming law but still represents a huge victory for House Republican leaders and the Trump administration.” Republicans have “struggled for months to cobble together legislation that would garner the required 216 votes from its own fractured conference.”

        On its front page, the Washington Post Share to FacebookShare to Twitter (5/4, A1, Sullivan, Weigel, O'Keefe) reports that the approval of the AHCA “capped weeks of fits and starts for the GOP and represented an enormous victory for President Trump, who repeatedly pledged on the campaign trail last year to repeal and replace” the ACA “but has struggled to secure legislative wins early in his presidency.”

        The Washington Post Share to FacebookShare to Twitter (5/4, Ehrenfreund) reports in a separate article that the AHCA was passed without “an official estimate of how the bill will affect the federal government’s bottom line or how many Americans could go without insurance under the plan.” Therefore, it remains unclear “whether the legislation would save the government money or add to the national debt.” The Congressional Budget Office has “not had time to put together” its “usual estimate of the costs and savings, and independent analysts are uncertain about what the results would be.”

        The Wall Street Journal Share to FacebookShare to Twitter (5/4, A1, Andrews, Peterson, Subscription Publication) also reports on its front page that the AHCA now faces some significant hurdles in the Senate.

        Changes Mandated By AHCA Could Also Affect Employer-Sponsored Coverage. USA Today Share to FacebookShare to Twitter (5/4, O'Donnell) reports the House’s approval of the AHCA “means people who get health insurance through their employers could also wind up with lifetime limits on their coverage and plans that don’t cover benefits such as mental health or maternity care, just as it will be for those who buy their own insurance on the exchanges.”

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Legislation and Policy

President Trump Signs Executive Order That Would Make It Easier For Employers Not To Cover Contraception In Employees’ Health Plans.

NBC Nightly News (5/4, story 2. 1:20, Alexander) reported that on Thursday, President Trump “signed an executive order that waves into the delicate question” of “how government strikes the balance between church and state.”

        On ABC World News Tonight (5/4, story 3, 1:40, Vega), ABC News correspondent Cecilia Vega was shown saying the new executive order “promises unspecified relief for organizations that claim a religious objection to an” ACA “mandate, requiring them to cover contraception in their healthcare plans.”

        USA Today Share to FacebookShare to Twitter (5/4, Jackson, Groppe) reports the executive order that “aims to make it easier for employers with religious objections not to include contraception coverage in workers’ health care plans, although it would be up to federal agencies to determine how that would happen.” After the order was signed, Secretary of Health and Human Services Tom Price promised to take action to “safeguard the deeply held religious beliefs of Americans who provide health insurance to their employees.”

Public Health and Private Healthcare Systems

Insurers Still Waiting To Find Out If Cost-Sharing Subsidies Will Continue.

Reuters Share to FacebookShare to Twitter (5/4, Humer) reports that regardless of the outcome of Thursday’s vote on AHCA, insurers still are in the dark as to whether the Administration will “continue to fund the cost-sharing subsidies that help individuals pay for care.” The article says, “Cost-sharing subsidy payments from the government are estimated at $7 billion this year and $10 billion next year. Without them, insurers say they would need to raise rates at least 20 percent next year.” The article also says hospitals are “worried about rising premium costs” especially in “[s]outhern Republican states that did not expand Medicaid [as] they expect the number of patients covered through the exchanges to drop if prices spike in 2018, increasing bad debt.”

CareFirst BCBS Want To Raise Rates By 50 Percent In Maryland.

The Washington Post Share to FacebookShare to Twitter (5/4, Johnson) reports CareFirst Blue Cross Blue Shield is “requesting a greater than 50 percent rate increase in Maryland, a 35 percent increase in northern Virginia and a 29 percent increase in D.C.” The company is projecting losses of $600 million since selling policies on the exchange in 2013. Chet Burrell, CEO of CareFirst says the “pool of beneficiaries is becoming sicker, in part because healthier people are not coming in at the same level we hoped.” The article notes that this request comes one day after Aetna announced it will not be selling individual insurance in Virginia anymore due to financial losses.

        The Baltimore Sun Share to FacebookShare to Twitter (5/4, McDaniels) says other insurers are also asking for significant increases. The article reports, “Cigna Health and Life Insurance Co. requested an average 37.36 percent increase, while Kaiser Foundation Health Plan of the Mid-Atlantic States asked for an average 18.08 percent increase.”

Arkansas Governor Signs Law To Allow State To Seek New Restrictions On Medicaid Hybrid Program.

The AP Share to FacebookShare to Twitter (5/4) reports Arkansas Gov. Asa Hutchinson ratified a law “allowing the state to seek federal approval for...new restrictions to” Arkansas’ hybrid Medicaid “program, which uses Medicaid funds to purchase private insurance for low-income residents.”

Colorado Legislature Strikes Deal On Bill Increasing Medicaid Co-Pays.

The Denver Post Share to FacebookShare to Twitter (5/4, Eason) reports Colorado legislators reached “a major agreement” on a measure that “would reverse a planned $528 million cut to hospitals, while boosting funding to roads and schools,” and “provide a tax break to small businesses, hike recreational marijuana taxes, increase Medicaid co-pays and lower the state’s spending cap by $200 million.” The piece says the bill was first “viewed as a long shot,” but that it “now contains a dozen major provisions that touch virtually every top spending priority at the state Capitol.” The piece adds that the bill “has the votes to pass both chambers.”

Illinois Senators Voice Concern Over Governor’s Plans To “Revamp” Medicaid Coverage.

The Peoria (IL) Journal Star Share to FacebookShare to Twitter (5/4, Finke) reports a number of Democratic senators criticized Gov. Bruce Rauner’s “plan to remake the state’s Medicaid managed care program,” which involves “revamp[ing] the program that provides managed care to Medicaid recipients” by diverting “part of the state’s Medicaid costs...to insurance administrative fees, profits for companies and a tax that must be paid under the Affordable Care Act.”

Indiana Healthcare Program Offering Free Cell Phones.

The Indianapolis Star Share to FacebookShare to Twitter (5/4, Barth) reports the Healthy Indiana Plan healthcare program, available to people at or below 133 percent of the federal poverty level, offers policyholders benefits such as free cell phones, which are among “the most popular benefits” in the plan. Such services give “people in isolated rural areas” the ability “to get immediate help,” and connect people with career counseling and substance cessation services.

Also in the News

Analysis: Despite Public Outrage Over Drug Prices, Patients Are Paying Less Out Of Pocket On Average, Study Finds.

In an analysis for the Washington Post Share to FacebookShare to Twitter (5/4) “Wonkblog,” Carolyn Johnson writes that despite “widespread outrage about soaring drug prices,” people are, “on average, actually paying less for their medications than they did a few years ago,” according to a study by the QuintilesIMS Institute. Although net prices rose 3.5% last year, “patients’ out-of-pocket costs for medicines have declined, from $32 per name-brand prescription in 2013 to $28 today.” Johnson explains that the discrepancy is caused by “the extremes,” as “on the low-end of the average are an increasing number of prescriptions that have zero dollar out-of-pocket costs,” while “on the high-end of the average are the people who are exposed to the ever-rising list prices of drugs through deductibles or coinsurance.”

Thursday's Lead Stories

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