Why it is better to rebuild now is a healthcare account

WASHINGTON — President Biden and Democrats in Congress had hoped to pass a broad domestic policy package that would expand the social safety net, raise taxes on corporations and the wealthiest Americans, and tighten regulation of climate-changing pollutants. But West Virginia Senator Joe Manchin’s decision to… withdraw support from other aspects of an already shrunken package leaves nothing but health care on the table this week.

But even if what was once a sidecar of sorts under the so-called Build Back Better Act is now the only vehicle left on the road, it would still have a significant impact on the lives of many Americans. And unlike other facilities that have had mixed political reception, the central health care proposal that remains is wildly popular with the public — Republicans included.

That piece is prescription drug pricing reform that Democrats have been promising for years and many Americans tell pollsters they want. The bill would deal several blows to the price of drugs — directly regulating prices for a group of expensive drugs purchased by Medicare and punishing drug companies that raise prices too quickly for existing drugs for all Americans.

The legislation under discussion would also increase Medicare’s benefit to prescription drugs, increase financial aid for poorer seniors, and eliminate the program’s current unrestricted cost-sharing system, which would affect some beneficiaries. facing over $10,000 a year in medication cost. No one on Medicare would be asked to pay more than $2,000 a year for prescription drugs under the law, a significant benefit for patients taking expensive medications for serious illnesses such as cancer and multiple sclerosis.

The prescription drug regulations are unusual in that they provide tangible benefits to Americans — lower drug prices, more financial protection — while saving the federal government money. That’s because the bill is essentially putting the savings on the back of the pharmaceutical industry, which will have to accept lower prices for some of its big sellers.

Industry defenders in Congress, and the pharmaceutical companies themselves, argue that the change could thwart innovation and cost jobs. Such arguments have held back drug price reforms in the past. But previous rounds of negotiations suggest this package will likely have enough votes to pass the Senate.

Mr Manchin has also expressed support for another health facility that has received less attention in recent reports on the emerging deal. He said he’s open to an extension of premium subsidies that lower the price of insurance for Americans who buy their own coverage, rather than getting it through the government or a job.

those subsidies were already expanded as part of Congress’s pandemic emergency law last year, but the extension is set to expire in December unless new legislation pushes it forward.

The grants are important to many Democratic lawmakers because they are seen as fulfilling the promise of the Affordable Care Act. The extra money lowers premiums for almost every American who purchases a health plan through the Obamacare marketplaces, makes certain plans free for lower-income Americans, and provides financial aid to higher-income people who previously had no help paying for insurance.

In a statement Friday in support of measures calling on the Senate to pass the legislation before the August recess, Mr. Biden said Democrats had “come together” and “knocked back the pharmaceutical industry.”

“Not only will this reduce the cost of prescription drugs and health care for families,” he added, “it will reduce the deficit and help fight inflation.”

But for Democrats who had hoped for social spending on programs other than health care, the cost of extending Obamacare’s subsidies may disappoint. A slightly outdated estimate suggests they will cost the federal government nearly as much to expand as the drug pricing provisions would save — $220 billion over a decade, compared to about $288 billion in savings.

Mr Manchin has said he may be open to climate and tax regulations in the fall. If he also hopes for deficit reduction, there may be less money to spend than some lawmakers had anticipated.