Richard Rubin (WSJ, Healthcare Law)
Jan 10, 2017|
Richard Rubin (WSJ, Healthcare Law) by The Financial Exchange
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
President elect from his pressuring Republicans to repeal the Affordable Care Act also known as obamacare. In it the same breath the health plot taxes complicate the GOP's repeal strategy. Joining us now to help straighten this out is Richard Rubin from the Wall Street Journal Richard thank you very much for joining us. And so are the Republicans based on what you see going on in unit talking to congressional leaders. Are they going to repeal obamacare the spring. They're gonna try. I am right now or in. It has no word on exactly hear what happened tempered and attacked questioners the question of whether they should repeal it now. What to believe effective date nightclub with a replacement plan or where they want to have the replacement plan in hand when may repeal it and that's the big of getting hashed out ahead as we speak. Would be where here's injuring. Predict exactly how that thought the plan aren't. What begs the question what you do in the interim lady like that save their successful and repealing it could see theoretically have the votes to get rid of it. But what do they do on an interim basis for the millions of people that are covered by. Peace that is they would. Create a sort of orderly transition that things would change in the near term and eventually would change that probably easier said than done because. And you know insurance companies and scarier than health care providers all want a plan a year or two ahead and so. There's an experiment that desire on the part of the industry first certainty about what delta turns marketable likens to when he came between nineteen. And sheep's all of their planning that's going on today habit that's something that we're certainly going to be watching it. As he put forward the details of a repeal bill which we have not been yet did not. Sort of congressional the leader west. Repeal bill but that's important. We're not only that maybe they could probably get a repeal through. Given their control of the house and senate. But the difficulty that I think they're gonna run into is in order to replace that they have to get sixty votes in the senate. And they don't have sixty votes they don't have anywhere near sixty votes in this. Exactly and what they're kind of party the Democrats bowl helped edit the if it when the laws repealed the Democrats will content table and want to help improve health insurance Nelson turned system that exists at that time. Actually that's actually going to work but that's that that's sort of their goal right now is. Different the way you'd Republican votes in the pulpit Democrats come to the table later to work. To prevent the kind of problems are packed up for that disrupt. Richard what about that taxes Ian because that's a bit the the disdain. That is held towards the affordable care for a bomb a care. Much of it is related to the taxes that were pain you know higher earners are pain. An extra. You know 4%. In federal income tax island aired dividend income on earned income just basically across the board tremendous amount of tax increases. That occurred because of it. Will the Republicans. Repeal those taxes. In this interim period in one of which you described. BB a big big big hefty price run repeal bill last year that President Obama vetoed and that's built you know pass in the early 2016 and that that all those factors both. Both Spock the taxes on higher but it doesn't do with health care and or industry fees on health insurance and pharmaceuticals and adequate thought. All of that would of been repealed as of December 31 when he came in with immediate. In fact companies retroactive from what they've asked that they. They haven't committed that's it of the time I haven't say yeah our will be released or updated repeal bill. It's going to be day that the taxes will be gone as during our first seventeen it it is a couple reasons that I wanted unity. If you get rid of those taxes than you need to paper. So big and on the road Republicans don't like reading taxes that they don't want like coming in and cut in taxes come back adaptive re imposed. And there'll children's fund that transition period of having that money available accretive to two deficit problem and the next couple of years to be in need. But because of the transition and so. It's not at all clear role happen I do urgent health industry taxes or to those are broader taxes on. I think council. I would think you're gonna lose a lot of their base if they don't get written at least those income taxes cassettes of people were. A lot of people were very upset by that and they're looking at dancing gene a two vote for that that was something that got people to the booths the Pope. It but I don't know it help it would react the answer is. Well those taxes are going away but they're going away and I'm just beaten up these here. During her first 29 during the first of twenty Tony that it took out there a decision because the one. Investment income yet. Dividends which you can't really control the timing of but it. You know for capital mean there's really strong evidence that people we meet you realized capital Hillary goes out and so. He can do with that done capital gains. That particular has control over. Maybe waiting isn't necessarily. Worst thing for taxpayers because they've been able you know coming. Right right yes you know they OK we didn't get it in seventeen but we yet for sure on. January 1 of eighteen. Yeah I would expect he'll he would be they in the bill for each of them back it's just not it was not clear. They may not be commuted the idea that it will be in it and it will be essential. OK Richard thank you very much for your time appreciate it. Richard Rubin Wall Street Journal complicated issue in the unique. The you've got a president who's the pulpit saying hey get rid of this thing. But they don't have a plain neat they don't have anything at least they can get through that house. While the other thing that you have to remember when you talked about the house is that a lot of those members. Were elected by districts that wanted. Things such as they balanced budget amendment and so when you talk about taking away this tax revenue. It's all well and good into all this idea to start cutting programs that your constituents actually used and so that's one of the things. That I think that house is going to have to try to figure out as saying. Look if we're going to get rid. Of this tax revenue had we do it in such a way. That we don't affect the programs that our constituency is the most and that's going to be something that is complicated to deal with I mean it's it's not an easy issue. It you know it's all well and good when he say look we're gonna cut a trillion dollars in spending. When you start having to say look we're example million dollars here and a millionaire. You start getting you know into some real issues that affect people on a day to day basis. Something that was very popular and you know they may need to get rid of it from an affordability standpoint was. Keeping kids on your insurance plan until they were 26 years old yup that's one of the things it would go away. And that's popular crossed party lines there's a lot of kids you know they might not graduate college until they're 2324 years old. And then they might wanna go to law school or grad school or you know oodles. But that 26 year old being on new insurance plan could end up being one of the victims. And and one of the things get sacrifice. Well we've got a couple different areas to mean also the that the ban on banning people with preexisting conditions and that was something that was a major component. Of the Affordable Care Act and so when you talk about getting rid of that. You know there are a lot of people who were able to finally pick up coverage because that that we're denied previously. But the only way they can keep that is if you keep the mandate otherwise you don't get no funding going in so it's a really difficult. You know. Kind of dance that they have to do in order to try to keep the peace is that you want more getting rid of all the fact it came along with the.