In today’s packed newsletter, I first review Democrats’ costly health care demands to end the shutdown. I then highlight a new op-ed by Chris Jacobs that debunks KFF’s claim that Obamacare plan premiums will double if the COVID credits expire, and a new and related Paragon Pic that shows only 3.3 percent of 2026 premiums are related to the expiring COVID credits. I then discuss a Chris Pope article on massive Obamacare fraud in South Florida and a new Paragon brief on the CMS Innovation Center.
Costs of the Democratic Demands
Senate Democrats have now voted 11 times to keep the federal government shuttered—demanding the repeal of health care reforms in the One Big Beautiful Bill (OBBB) as well as their own previous expiration date for the COVID-era Obamacare add-on subsidies to insurers. Democrats claim that they are fighting to lower health care costs, but the results of these policies would increase costs. Repealing the OBBB health reforms will increase federal health spending by $1.2 trillion over 10 years. And making permanent the COVID-era subsidy add-ons would raise deficits by more than $400 billion over the next decade.
- Extending Biden’s COVID credits would entrench the inflationary subsidy machinery that has already raised prices and premiums while fueling waste and fraud. (Here is a 20-minute explainer video that I put together last week to explain the structure of Obamacare subsidies and the COVID credits as well as the explosion of improper and zero-claim enrollment over the past few years. Yesterday, I participated in a Cato event on the COVID credits and potential reforms.)
- Repealing OBBB’s immigration reforms would expand spending on non-citizens and unauthorized immigrants by $20 billion a year—crowding out care for Americans.
- OBBB’s Medicaid reforms will reduce corporate welfare payments that result in Medicaid payments for many hospitals up to average commercial rates—rates much higher than Medicare rates. Reversing these reforms would increase commercial prices as well as federal spending.
- OBBB put in place work and community-engagement requirements for able-bodied, working-age adults in Medicaid—policy meant to incentivize work, job training, and community service while preserving public resources for the most vulnerable Medicaid enrollees.
Lobbyists for insurers and hospital systems are pushing to extend enhanced ACA tax credits and roll back the OBBB’s reforms to secure higher subsidies and prices. Although congressional Democrats claim to fight for lower premiums and costs, their policies would drive up spending, prices, debt, taxes, and interest rates. --->READ MORE HERE
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| Michael Nagle/Bloomberg |
Bank of America 0.81(1.56%) asked a federal court this week to dismiss claims brought by Californians who said the bank unfairly denied them unemployment benefits during the COVID-19 pandemic.
The litigation arises from what the bank characterized in a court filing as "perhaps the largest epidemic of consumer financial fraud in U.S. history," stemming from thieves stealing billions in unemployment benefits it distributed on the state's behalf during the pandemic.
The Californians suing the bank claim that Bank of America overzealously and unfairly denied their unemployment insurance claims as it attempted to grapple with the massive wave of unemployment fraud.
The bank this week asked the U.S. District Court for the Southern District of California to grant summary judgment on all claims asserted by the five classes that the court has certified in the lawsuit.
How Bank of America distributes California's unemployment benefits
California since 2010 has contracted with Bank of America as the default issuer of unemployment and disability insurance payouts. These payouts come in the form of prepaid debit cards.
The state does not pay the bank for this service. Rather, Bank of America monetizes the arrangement by collecting point-of-sale transaction fees and other income from the millions of debit cards it issues as part of the program.
BofA challenges claims made under EFTA
In its motion, Bank of America emphasized eliminating damages under the Electronic Funds Transfer Act, or EFTA.
The bank argued that the Californians suing it cannot prove actual damages because, following consent orders issued in July 2022 by the Consumer Financial Protection Bureau and Office of the Comptroller of the Currency and subsequent remediation efforts, "all class members have been fully compensated for their claim amounts," according to the bank's motion.
The central issue is the efficacy of the remediation and whether full repayment strips consumers of their right to pursue additional damages or prevents further recovery. --->READ MORE HEREFollow links below to relevant/related stories and resources:
Post-pandemic COVID-19 linked with high numbers of workforce absences and exits
NHS says this Covid symptom may mean you need urgent attention
USA TODAY: Coronavirus Updates
WSJ: Coronavirus Live Updates
YAHOO NEWS: Coronavirus Live Updates
NEW YORK POST: Coronavirus The Latest
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