From David Williams <[email protected]>
Subject New Healthcare Report and C-Band Progress - TPA Weekly Update: February 7, 2020
Date February 7, 2020 9:14 PM
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It was a busy week with the Iowa caucuses, State of the Union, and impeachment.

It was a busy week with the Iowa caucuses, State of the Union, and impeachment. What you may not have seen or heard about is that the United States Postal Service lost $748 million in the first quarter of the fiscal year. New legislation just passed the House of Representatives to “fix” some of their financial problems. But as TPA policy director Ross Marchand explains in his latest op-ed ([link removed]) , the new legislation is a dud: “The ‘USPS Fairness Act’ (H.R. 2382), introduced by U.S. Rep. Peter DeFazio (D-Oregon) would excuse the agency from prefunding its employees’ retirement obligations. Lawmakers and USPS leadership may not want to hear it, but it’s time for the agency to grow up.” So, more million-dollar losses and superficial reform; looks like things don’t really change.

Healthcare Issue Briefs

As we’ve seen in the Democratic presidential debates and the State of the Union, healthcare is at the forefront of a lot of people’s minds. But there are two different directions that policymakers can go in reforming the U.S. healthcare system: toward more government intervention or less government involvement. The Taxpayers Protection Alliance released ([link removed]) a series of issue briefs yesterday highlighting five key areas of healthcare policy: Billing, Government-run Healthcare, Healthcare Taxes, Hospice Care, and Pharmaceuticals. In each of the areas we lay out a description of the issue and offer solutions. For example, Billing, aka surprise medical bills, is a major topic of conversation with discharged patients receiving astronomical medical bills and members of Congress who aim to address and vote on these issues in the coming weeks/months. We all know that many Americans fear the prospect of
getting a “surprise medical bill” in the mail days or even weeks after getting discharged from a hospital room. Typically, the issue is not a lack of insurance, but rather about being “out of network.” More than 90 percent of Americans have coverage, while virtually all of the remaining 10 percent have chosen not to enroll in insurance programs despite being eligible for Medicaid or subsidized Affordable Care Act (ACA) exchanges.

We offer three solutions to the surprise billing issue:

1. Oppose any attempts to introduce rate-setting. Proposals to fix healthcare prices would lead to the widespread consolidation of doctor’s offices across the country compromising care for millions of patients. Lawmakers must resist any attempt to increase federal interference in the American healthcare system.

2. Support a nationwide arbitration system. Wherever tried, arbitration has allowed doctors and insurers to successfully negotiate billing claims while absolving patients of unwanted medical liabilities. Members of Congress should support the creation of a market-based negotiation process, while ensuring that arbitration proposals remain free of overregulation and rampant rulemaking.

3. Increase competition and choice in the healthcare sector. While lawmakers debate various “solutions” to the issue of surprise medical billing, they must remain mindful of the underlying reasons for out-of-network billing. Insurance networks remain “narrow” due to failed federal interventions in healthcare such as the ACA. Until this regulatory overreach is repealed, patients will continue to see unintended consequences such as surprise bills.

Fortunately, we may be well on our way to pro-patient reforms. This morning, Ways and Means Committee Chairman Richard E. Neal (D-Mass.) and the top Republican on the Ways and Means Committee Kevin Brady (R-Tex.) released the “Consumer Protections Against Surprise Medical Bills Act of 2020,” which would protect patients from receiving surprise bills and allow for an arbitration process between providers and insurers. Stay tuned as we continue to analyze and highlight the differences between different proposals to address the surprise billing issue. And in the meantime, be sure to read our full report here. ([link removed])

One Step Closer to 5G With Public C-Band Auction

Wireless spectrum is worth a lot of money and is the key to closing the digital divide. Fortunately, there is a big swath of mid-band spectrum called the “C-band” (perfect for 5G) that will soon be put up for auction. Incumbent satellite users of the band under the banner of the C-Band Alliance (CBA) fought for months to conduct a private sale of the spectrum with little oversight or guarantee of taxpayers being compensated. From Day 1, TPA has supported a public auction run by the Federal Communications Commission (FCC) that will get the spectrum in the right hands to close the digital divide and compensate taxpayers. Yesterday, FCC Chairman Ajit Pai signaled that they are moving forward with a public auction of C-band spectrum. Freeing up spectrum for 5G deployment is no small issue since 5G is at least ten times faster than current 4G LTE. The latest internet standard can make significant progress in helping bridge the digital divide. A public auction is the fastest and most reliable
way to 5G across the country, yet the CBA insists on fearmongering over “losing access to TV and radio service.” Chairman Pai has wisely chosen to protect taxpayers and continue to close the digital divide with a clearly articulated plan to make this critical mid-band spectrum available for 5G without leaving taxpayers in the lurch.

The FCC’s approach relies on a proven public auction process that has generated more than $120 billion for taxpayers over the past 26 years. The agency has also proven itself capable of conducting two-sided auctions that can successfully clear out incumbents and reallocate spectrum. In March of 2016, the agency embarked on a two-sided auction (known as the broadcast incentive auction) in order to clear nearly 90 megahertz of spectrum of incumbent broadcasters. The stakes could not have been higher as internet providers made clear to the agency and incumbent license holders the need for flexible-use licenses to spearhead 5G deployment. Despite initial concerns, the process was a resounding success: spectrum was quickly cleared while taxpayers were able to claim more than $7 billion. By all indications, the C-band auction will be similarly successful.

Despite this successful track-record, the CBA continues to demand a “private sale” that would deposit billions of dollars into a reallocation fund with little oversight or transparency. A public FCC auction could clear the C-band at a far lower cost. An auction would also be far more transparent and result in the rapid clearing of spectrum. And, with the value of the spectrum potentially eclipsing $60 billion, $9.7 billion in incentive payments ensures that taxpayers are protected.

The right choice could not be clearer, and the FCC has wisely chosen to move ahead with a public auction. Chairman Pai should be commended for protecting taxpayers and closing the digital divide while bringing in resources to the United States Treasury.

Thank you Chairman Pai!

Blogs:

Monday: Rural Residents Stand to Lose the Most from ‘Medicare for All’ ([link removed])

Wednesday: Watchdog Praises President Trump for Surprise Billing Call-to-Action ([link removed])

Thursday: Watchdog Praises FCC Chairman Pai for Moving Forward with Public C-Band Auction ([link removed])

Friday: Taxpayer Watchdog Releases Commonsense Healthcare Reform Proposals ([link removed])


Media:

February 1, 2020: Townhall ran TPA’s op-ed, “Rural Residents Stand to Lose the Most from 'Medicare for All.’”

February 4, 2020: Florida Daily quoted TPA in their story, “Americans View the U.S. as Positive But See Several Areas Needing Improvement, New Poll Shows.”

February 5, 2020: The Center Square ran TPA’s op-ed, “Time for the Postal Service to grow up.”

February 5, 2020: The Christian Post mentioned TPA in their article, “Surprise medical bill legislation opens door to Medicare for all.”

February 6, 2020: The Bull Elephant (Garrisonville, VA) ran TPA’s op-ed, “Train Regulation Threatens to Derail Family Finances in Virginia.”

February 6, 2020: Catalyst ran TPA’s op-ed, “HSAs can Save Millions of Smokers’ Lives – with the Right Rules.”


Have a great weekend, and as always, thanks for your continued support.

Best,
Ross Marchand
Director of Policy
Taxpayers Protection Alliance
1401 K Street, NW
Suite 502
Washington, D.C. xxxxxx
www.protectingtaxpayers.org ([link removed])

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