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Morning Briefing

Summaries of health policy coverage from major news organizations

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Wednesday, Feb 5 2020

Full Issue

Fact Checking State Of The Union: Premiums, Pre-existing Conditions, Price Transparency, And More

Media outlets fact check various claims by President Donald Trump during his State of the Union address. While some were misleading or lacked evidence to back them up, others were mostly true.

THE FACTS: Prices for prescription drugs have edged down, but that is driven by declines for generics. Prices for brand-name medications are still going up, although more moderately. Nonpartisan government experts at the Department of Health and Human Services reported last year that prices for pharmacy prescriptions went down by 1% in 2018, the first such price drop in 45 years. The department said the last time retail prescription drug prices declined was in 1973, when they went down by 0.2%. (Boak, Woodward and Yen, 2/4)

About 4.2 million people (not 7 million) have stopped receiving food stamps since February 2017, according to the latest data. But experts say the improvement in the economy may not be the only reason for the decline. Several states have rolled back recession-era waivers that allowed some adults to keep their benefits for longer periods of time without employment. Reports have also suggested immigrant families with citizen children have dropped out of the program, fearing the administration’s immigration policies. Moreover, the number of people collecting benefits has been declining since fiscal 2014. (Kessler, Rizzo and Cahlan, 2/4)

This is misleading. The president’s claim is based on a White House report comparing premiums in the individual insurance market before the Affordable Care Act with those several years after its enactment. That report made several methodological choices that tended to increase the difference in prices. Health plans for a far larger group of Americans, who obtain health insurance through their jobs, have increased by smaller margins. Over all, however, health insurance prices have increased in recent years. (Sanger-Katz, 2/4)

This is false. The president has taken multiple steps to weaken or eliminate current protections for Americans with pre-existing health conditions. These efforts include legislation he championed, regulation his administration has finished, and a lawsuit the Justice Department is litigating that would declare the Affordable Care Act unconstitutional. (Sanger-Katz, 2/4)

This lacks evidence. New rules that will require public disclosure of the prices negotiated between health care providers and insurance companies are a new policy, without much strong evidence about their effects. Some experts, including economists who have advised the president, think transparency could reduce health care prices. But other experts believe the policy could have a perverse effect, increasing prices. New Hampshire, a state that has introduced a similar policy on a more limited scale, has shown modest price declines for certain services, but not “massive” price reductions. (Sanger-Katz, 2/4)

This is weighted but mostly true. Bills to create a national “Medicare for all” system have been co-sponsored by large numbers of Democratic lawmakers. The bills would eliminate private health insurance, but they would provide those people with generous government health insurance instead. Technically, this would not be a fully socialized health care system, since the bill would allow doctors, hospitals and other health care providers to remain private. (Sanger-Katz, 2/4)

This is mostly true. The “Medicare for all” bills co-sponsored by many Democratic lawmakers would provide government health benefits to all “residents” of the country, a group that appears to include undocumented immigrants. The bill also specifies that coverage will not be denied to residents on the basis of “citizenship status.” Whether this aspect of the bill would bankrupt the country is more questionable. The Medicare for all bills are expected to require large increases in federal spending, but the coverage of undocumented immigrants would represent a small fraction of that spending. (Sanger-Katz, 2/4)

This is misleading. Not only has President Trump failed to strengthen Medicare and Social Security, but the financial outlook for both trusts has not improved or worsened. That is at least partly the result of Mr. Trump’s tax law, which has left the Treasury Department to collect fewer taxes from Americans and, in turn, invest less money into each program. Last April, the government projected that Medicare funds would be depleted by 2026, three years earlier than estimated in 2017. The report noted that less money will flow into the fund because of low wages and lower taxes. (Qiu, 2/4)

California last year agreed to let undocumented adults under age 26 enroll in Medi-Cal, the state-federal health insurance program for low-income Californians. Undocumented children were already eligible.The legislation, which took effect Jan. 1, was groundbreaking in this country. But that was as far as it went. (Lightman, 2/4)

Kaiser Health News: On Drug Pricing, The President’s Numbers Are Still Off

During the 2020 State of the Union address, President Donald Trump zeroed in on prescription drug prices, arguing that his administration is “taking on the big pharmaceutical companies.” Among the evidence for that claim: a talking point the administration has been using since last April. “I was pleased to announce last year that, for the first time in 51 years, the cost of prescription drugs actually went down,” Trump said. We’ve examined this claim twice before, rating it Mostly False. But prescription drug prices are a major voter concern. So we wanted to take another look, in case things had changed. (Luthra, 2/5)

Kaiser Health News: Trump On ‘Medicare For All’ And The Costs Of Extending Health Care To Undocumented Immigrants

In his State of the Union address, President Donald Trump said the cost of extending health care to people regardless of their citizenship status would "bankrupt" the U.S. (Luthra, 2/5)

This is part of the Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
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