WASHINGTON: Premiums for a popular type of individual health care plan would rise sharply, and more people would be left with no insurance options if President Donald Trump makes good on his threat to stop “Obamacare” payments to insurers, the Congressional Budget Office says.
The nonpartisan number crunchers also estimated that cutting off payments that now reduce copays and deductibles for people of modest incomes would add $194 billion to federal deficits over a decade. That head-scratching outcome is because a different Affordable Care Act subsidy would automatically increase as premiums jump, more than wiping out any savings.
“Ending the payments to insurers would introduce more chaos into an unsettled market, and perversely end up costing the federal government more in the end,” said Larry Levitt of the Kaiser Family Foundation, a nonpartisan group that found similar results.
At issue are the ACA’s “cost-sharing” payments, totaling about $7 billion this year, which reimburse insurers for subsidizing out-of-pocket costs for people with modest incomes.
It’s a financial break that can cut a deductible of $3,500 down to a few hundred dollars. Nearly 3 in 5 HealthCare.gov customers qualify for cost-sharing help, an estimated 6 million people or more. But the money is under a legal cloud because of a dispute over whether the Obama-era law properly authorized the payments. Trump has been threatening to end the monthly payments.
The 14-page report released Tuesday lays out consequences if that happens, some counterintuitive:
— Consumers who now qualify for tax credits to offset their monthly premiums would be largely shielded from the estimated 20 percent jump in the cost of a standard “silver” plan, because of the automatic increase in the ACA’s premium subsidies. Solid middle-class households who make too much to receive help for premiums could avoid a big hit by looking for coverage outside the government marketplace.
— Depending on factors like their income and age, some subsidized customers would be able to take their higher premium tax credits and buy a generous “gold” level plan for about the same money, or a skimpy “bronze” plan for much less or nothing.
— Some insurers would decide to exit the market rather than re-jigger premiums for 2018 at the last minute. That would leave areas of the country that are home to about 16 million people with no insurers in the health care marketplace for individual policies. Rural communities are at greater risk.
— About 1 million people would become uninsured right away, but within a few years that slippage would reverse and more people would be covered.
The White House immediately dismissed the report, saying that the president is still weighing options. Insurance industry groups say they have seen no sign that payments due at the end of August will be halted.
“Regardless of what this flawed report says, Obamacare will continue to fail with or without a federal bailout,” White House spokesman Ninio Fetalvo said in a statement.
No final decisions have been made about the payments and “we continue to evaluate the issues,” he said.
Insurers say they need a decision from the government now, before they lock down their rates for 2018.
Leading Republican lawmakers have called for continuing the payments, at least temporarily, to ensure market stability. Senate Health, Education, Labor and Pensions Committee Chairman Lamar Alexander, R-Tennessee, is working on such legislation. He and the top Democrat on the committee, Sen. Patty Murray of Washington, plan bipartisan hearings.
Alexander said Tuesday the CBO report reveals “a real and immediate concern.”
“When the house is on fire, you put out the fire, and Congress should work quickly in September to pass limited, bipartisan legislation that funds cost-sharing payments for 2018 and gives states more flexibility to offer lower cost plans,” he said in a statement.
For months, Trump has been raising the prospect of terminating payments as a way to trigger a crisis and get Democrats to negotiate on a health care bill.
After the GOP drive to repeal “Obamacare” collapsed, the president tweeted: “As I said from the beginning, let ObamaCare implode, then deal. Watch!“
Trump elaborated in another tweet, “If a new HealthCare Bill is not approved quickly, BAILOUTS for Insurance Companies...will end very soon!“
The subsidies are snared in a legal dispute over whether the Obama health care law properly approved the payments to insurers. Adding to the confusion, other parts of the law clearly direct the government to reimburse the carriers.
The disagreement is over whether the law properly provided a congressional “appropriation,” similar to an instruction for the Treasury to pay the money. The Constitution says the government shall not spend money unless Congress appropriates it.
House Republicans trying to thwart the ACA sued the Obama administration in federal court in Washington, arguing that the law lacked specific language appropriating the cost-sharing subsidies.
A district court judge agreed with House Republicans, and the case has been on hold before the US appeals court in Washington.
Report: Higher premiums if Trump halts ‘Obamacare’ subsidies
Report: Higher premiums if Trump halts ‘Obamacare’ subsidies
China-led lunar base to include nuclear power plant on moon’s surface, space official
Russia destroys energy facility in Ukraine’s Kherson, governor says
- The drone attacks are continuing and there could be emergency power cuts
Oleksandr Prokudin said the facility, which provided the city of Kherson with electricity, had come under Russian artillery and drone attacks for more than 24 hours.
“Our military fought all night to repel the enemy attacks. However, in the morning, the Russians succeeded in destroying the energy facility,” Prokudin said on Telegram.
The drone attacks are continuing and there could be emergency power cuts as energy workers are working to stabilize the situation, he added.
China’s Xi says tariffs ‘hurt’ multilateral trade
- China responded with a 125 percent duty on goods from the United States.
Beijing: Chinese President Xi Jinping said Wednesday tariffs “hurt” the multilateral trading system as he hosted his Azerbaijani counterpart for talks in Beijing, state media said.
Tariff and trade wars “undermine the legitimate rights and interests of all countries, hurt the multilateral trading system, and impact the world economic order,” he told Azerbaijani President Ilham Aliyev, state news agency Xinhua reported.
Beijing and Washington have been embroiled in a blistering trade war since US President Donald Trump this month slapped a 145 percent blanket tax on Chinese imports.
China responded with a 125 percent duty on goods from the United States.
Beijing’s commerce ministry this week warned other nations to be wary in seeking a deal with Washington.
“China firmly opposes any party reaching a deal at the expense of China’s interests,” a ministry spokesperson said Monday in a statement.
“Appeasement will not bring peace, and compromise will not be respected,” the statement said.
On Wednesday, Xi said that “despite a constantly changing international situation,” China and Azerbaijan had maintained close ties.
A day earlier, in phone calls with his British and Austrian counterparts, Chinese foreign minister Wang Yi urged Britain and the European Union to help in defending multilateral trade.
Pope Francis’ body to lie in state in St. Peter’s Basilica as the faithful mourn
- Heads of state are expected for Pope Francis’ funeral Saturday in St. Peter’s Square
- The three days of public viewing are largely for ordinary Catholics to grieve the pontiff
VATICAN CITY: The body of Pope Francis will be moved to St. Peter’s Basilica early Wednesday to lie in state for the Catholic faithful to pay their respects to the Argentine pontiff remembered for his humble style, concern for the poor and insistent prayers for peace.
Heads of state are expected for the funeral Saturday in St. Peter’s Square, but the three days of public viewing are largely for ordinary Catholics to grieve the 88-year-old pope, who died Monday after suffering a stroke.
Francis first lay in state in the Santa Marta Domus in a private viewing for Vatican residents and the papal household. Images released by the Vatican on Tuesday showed Francis lying in an open casket, wearing the traditional pointed headdress of bishops and red robes, his hands folded over a rosary. The Vatican’s No. 2, Cardinal Pietro Parolin, was pictured praying by Francis.
His body will be transferred Wednesday morning to St. Peter’s Basilica, which will be kept open until midnight on Wednesday and Thursday to allow the faithful to mourn. The public mourning period will end on Friday at 7 p.m.
Once inside the basilica, his casket won’t be put on an elevated bier – as was the case with past popes – but will just be placed on the main altar of the 16th-century basilica, simply facing the pews.
Italian police have tightened security for the viewing and the funeral, carrying out foot and horse patrols around the Vatican, where pilgrims continued to arrive for the Holy Year celebrations that Francis opened in December. The faithful who walk through St. Peter’s Holy Door are granted indulgences, a way to help atone for sins.
“For me, Pope Francis represents a great pastor, as well as a great friend to all of us,’’ said Micale Sales, visiting St. Peter’s Basilica from Brazil.
“I think he spread a positive message around the world, saying there shouldn’t be any violence, there should be peace around the world,’’ said Amit Kukreja, from Australia.
The funeral has been set for Saturday at 10 a.m. in St. Peter’s Square, and will be attended by leaders including US President Donald Trump and Ukrainian President Volodmyr Zelensky.
Cardinals are continuing their meetings this week to plan the conclave to elect Francis’ successor, make other decisions about running the Catholic Church as world leaders and the ordinary faithful grieve the pontiff’s death.
History’s first Latin American pontiff charmed the world with his humble style and concern for the poor but alienated many conservatives with critiques of capitalism and climate change. He last appeared in public on Sunday with an Easter blessing and popemobile tour through a cheering crowd in St. Peter’s Square.
He had some reservations about looping through the square packed with 50,000 faithful, Vatican News reported on Tuesday, but overcame them – and was thankful that he had greeted the crowd. He died the next morning.
“The death of a pope is not a small thing, because we’ve lost our leader,’’ said Julio Henrique from Brazil. “But still, in a few days, we will have a new leader. So … the thing of hope remains. Who will assume Peter’s throne?”
Vietnam village starts over with climate defenses after landslide
- Last year, Typhoon Yagi’s rains unleashed a landslide that engulfed much of Lang Nu village in mountainous Lao Cai province
LAO CAI, Vietnam: Nguyen Thi Kim’s small verdant community in northern Vietnam no longer exists, wiped away in a landslide triggered by Typhoon Yagi’s devastating heavy rains last year.
She and dozens of survivors have been relocated to a site that authorities hope will withstand future climate change-linked disasters, with stronger homes, drainage canals and a gentler topography that lessens landslide risks.
It is an example of the challenges communities around the world face in adapting to climate change, including more intense rains and flash floods like those Typhoon Yagi brought last September.
Kim lost 14 relatives and her traditional timber stilt home when Yagi’s rains unleashed a landslide that engulfed much of Lang Nu village in mountainous Lao Cai province.
The storm was the strongest to hit Vietnam in decades, killing at least 320 people in the country and causing an estimated $1.6 billion in economic losses.
It is unlikely to be an outlier though, with research last year showing climate change is causing typhoons in the region to intensify faster and last longer over land.
Climate change, caused largely by burning fossil fuels, impacts typhoons in multiple ways: a warmer atmosphere holds more water, making for heavier rains, and warmer oceans also help fuel tropical storms.
Kim remains traumatized by the landslide.
She says everything is painful, especially the memory of the moment a torrent of mud swept away her and her two-year-old daughter.
“This disaster was too big for us all,” she said recalling the moment the pair were pulled from the mud hours later.
“I still cannot talk about it without crying. I can’t forget,” the 28-year-old said.
Yagi hit Vietnam with winds in excess of 149 kilometers (92 miles) per hour and brought a deluge of rain that caused destructive flooding in parts of Laos, Thailand and Myanmar.
In Lang Nu, 67 residents were killed, and authorities vowed to rebuild the homes of survivors in a safe spot.
By December, 40 new houses were ready at a site around two kilometers away.
It was chosen for its elevation, which should be less impacted by adjacent streams, and its relatively gentle slope gradient.
“Predicting absolute safety in geology is actually very difficult,” said Tran Thanh Hai, rector of Hanoi University of Geology and Mining, who was involved in choosing a new site.
But the site is secure, “to the best of our knowledge and understanding.”
Lao Cai is one of Vietnam’s poorest areas, with little money for expensive warning systems.
However, a simple drainage system runs through the new community, diverting water away from the slope.
This should reduce soil saturation and the chances of another landslide, scientists who worked on the site said.
The village’s new homes are all built of sturdier concrete, rather than traditional wood.
“We want to follow our traditions, but if it’s not safe any longer, we need to change,” Kim said, staring out at the expanse of mud and rock where her old village once stood.
Months later it remains frozen in time, strewn with children’s toys, kitchen pans and motorcycle helmets caught up in the landslide.
Like Kim, 41-year-old Hoang Thi Bay now lives in the new village in a modern stilt house with steel structural beams.
Her roof, once made of palm leaves, is now corrugated iron and her doors are aluminum glass.
She survived the landslide by clinging desperately to the single concrete pillar in her old home as a wall of mud and rocks swept her neighborhood away.
“I still wake up in the night obsessing over what happened,” she said.
“Our old house was bigger and nicer, with gardens and fields. But I sleep here in the new house and I feel much safer,” she said.
Even at the new site, home to around 70 people, there are risks, warned Hai.
Development that changes the slope’s gradient, or construction of dams or reservoirs in the area could make the region more landslide-prone, he said.
Building more houses or new roads in the immediate area, or losing protective forest cover that holds earth in place, could also make the site unsafe, added Do Minh Duc, a professor at the Institute of Geotechnics and Environment at the Vietnam National University in Hanoi.
Yagi wiped out large areas of mature natural forest in Lao Cai and while private companies have donated trees for planting, it is unclear whether they can provide much protection.
“In terms of landslide prevention, the only forest that can have good (protective) effects is rainforest with a very high density of trees, so-called primary forest,” explained Duc, an expert on disaster risk maps who also helped choose the new site.
Leaving the old community was hard for Kim, whose family had lived and farmed there for nearly half a century.
But she is grateful that she and other survivors have a second chance.
“I believe this is the safest ground for us.”
