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  House Democrats Say Provision in HealthCare Law Could Hurt Companies Earnings  
 

The New York Times (4/27, Pear) reports, "When major companies declared that a provision of the new health care law would hurt earnings, Democrats were skeptical," yet, "after investigating, House Democrats have concluded that the companies were right to tell investors and the government about the expected adverse effects of the law on their financial results." The Times adds, "At issue is a section of the law that eliminates a tax break available to companies that provide drug benefits to retirees as part of their insurance coverage." To date, "at least 40 companies have taken charges against earnings that total $3.4 billion since the law was signed." Some, like Verizon and Caterpillar, say that the provision could cause companies to stop providing healthcare coverage for employees.

 

        Stakeholders Seek To Influence HHS Implementation Of Healthcare Law. USA Today (4/27, Fritze) reports, "The debate in Congress over President Obama's health care law is done," but the "battle over how to carry out the law is just getting started." As a result, "dozens of special-interest groups that helped shape the 10-year, $938 billion health care measure over the past year...are gearing up for a second wave of lobbying as the Obama administration prepares to implement the law." The Chamber of Commerce, which opposed the measure, "is fighting to protect businesses that might be required to provide insurance," while AHIP "is providing data and suggestions" to HHS. Notably, HHS "declined to discuss industry attempts to influence implementation, but Secretary Kathleen Sebelius said in a statement that the department is 'working closely with states, insurers, providers, and other partners...we want to hear from everyone."

 

The New York Times (4/27, Rabin) reports, "Of all the changes wrought by the new health care law, none is more sweeping than the transformation of Medicaid -- from the government's health insurance plan for poor families into a much wider program for millions of the poorest Americans who cannot afford insurance on their own." It is estimated that "of the 32 million uninsured Americans expected to gain health coverage under the new law, as many as 20 million will be insured by Medicaid. ... Asset tests will be largely eliminated, so workers who lose their jobs can get health coverage even if they own their homes," although "illegal immigrants will not be eligible." The Times adds, "Absorbing that many people into the system will not be easy," particularly since states are dealing with budget shortfalls.

 

        Indiana Governor Says Medicaid Expansion Will Result In 50% More Enrollees. The Indianapolis Star (4/27, Groppe) reports, "Gov. Mitch Daniels has made an eye-popping prediction about the impact of the new health-care overhaul law on Indiana's Medicaid rolls." He "said the state's actuary determined that Medicaid enrollment will increase by almost 50 percent, resulting in nearly one in four Hoosiers getting coverage through the joint state and federal health program for the poor." Notably, these estimates "are much higher than the 27.5 percent increase that the nonpartisan Congressional Budget Office has projected nationally for Medicaid."

 

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