It’s football season and while I don’t want to talk about how poorly my team is playing, it is an exciting time of year for those of you who are rooting for potential playoff teams. It is also time for Sen. James Lankford (R-Okla.) and his Federal Fumbles report. This is becoming a tradition in Washington, D.C., when Sen. Lankford releases his report and the rest of Congress ignores it. What’s in it? For example, “there are multiple regulations for a company that makes frozen pizza, down to the toppings, depending on whether the pizza is cheese or pepperoni. USDA would inspect the meat for the pizza up to three times, but the Food and Drug Administration (FDA) would have jurisdiction over the cheese pizza.” Sen. Lankford also highlights electric vehicle subsides (see more below) and has probably one of the best lines I’ve ever read, “What do you think of that Tesla next to you at the stoplight? Glad you like it since you helped purchase it.” Jokes aside, this is a document that needs to be taken seriously because it offers real solutions to the runaway deficit and debt. You know, the two subjects that neither party is talking about.
Surprise Billing Solutions
When I arrived in Washington, D.C. almost 27 years ago, my first boss told me that just complaining about something wasn’t enough; you had to actually offer solutions. This was a great piece of advice and is critical to address the problem of surprise billing. You have probably already heard of this issue. Heck, you may have received a surprise medical bill. If not, a surprise bill occurs in situations where patients are unable to receive in-network care. Even if they are able to attend an in-network medical facility, some members of their care team (e.g. anesthesiologists, emergency room physicians) may not accept the patient’s medical insurance. In these situations, care providers may bill patients for expenses that cannot be recovered from insurers. This is a pervasive problem: according to a 2018 National Opinion Research Center survey, 57 percent of American adults have received a surprise bill. Because of narrowing insurance markets caused by Obamacare, more than one-fifth (22 percent) of privately-insured patients treated at in-network emergency departments are attended to by out-of-network physicians, often resulting in a surprise bill.
There are two solutions to surprise billing: 1. Government price-fixing; and 2. Arbitration. In 2017, California mandated price-fixing in response to the surprise billing crisis. Since then, California doctors (interviewed as part of an American Journal of Managed Care study) have cited physician group consolidation and less competition as consequences of the law. Physicians interviewed as a part of that study also noted that California’s 2017 rate-setting law makes it harder for hospitals to treat low-income patients. Arbitration, on the other hand, is working.
And, (maybe) shockingly, New York is a model for how and why arbitration is working. According to a 2018 study by Yale University scholars, New York’s 2015 arbitration law reduced out-of-network (i.e. surprise) billing by 34 percent. Since the start of New York’s arbitration system, final decisions on emergency surprise bills have been even-keeled. In fact, a 2019 New York State analysis found that health insurers won a majority (59 percent) of arbitration cases. New York’s arbitration system has “lowered in-network emergency physician payments by 9 percent,” according to the Yale University study. We have a full page dedicated to the subject here and if you want to contact your member of Congress you can do so here.
Electric Vehicle Subsidies and Eva Longoria
Last week I was watching TMZ (yes, I watch trash TV) and they were talking about Elon Musk’s new Tesla electric truck. They interviewed Eva Longoria about what she thinks about the new truck. She responded that, since she already owns two Teslas, she likes it a lot. Teslas and other electric vehicles (EV) have been subsidized by federal and state tax dollars for years. In 2008, President Bush signed legislation that allowed EV buyers to receive up to a $7,500 tax credit for purchasing their vehicles. But the credit was limited to the first 250,000 vehicles manufactured overall on the market (after which a phase-out would begin). In the stimulus package (signed in 2009 by Pres. Obama), this incentive was extended to include the first 200,000 vehicles produced by each manufacturer. After, say, Tesla (or any other manufacturer) crossed that threshold, the subsidy would start to wind down. Well, Tesla and GM both crossed that threshold in 2018, so now they’re lobbying for an extension of the EV limit (either to raise the vehicle cap or end the cap altogether). For Tesla in particular, the current max on the tax credit is $1,875, but at the end of 2019, that subsidy will be reduced to nothing. The “Green Act,” released on November 19 by House W&M Democrats, proposes to expand out the vehicle cap from 200,000 per manufacturer to 600,000 per manufacturer, opening the floodgates of taxpayer subsidies.
I know what you’re thinking: so what, the House passes all sorts of kooky pieces of legislation that never see the light of day. Well, not so fast. There are rumors that Sen. Chuck Grassley (R-Iowa) may be considering extending the EV tax credit. This misguided policy would harm millions of American households across the country. In 2018, Dr. Wayne Winegarden of the Pacific Research Institute calculated that nearly 80 percent of EV tax credits are claimed by households raking in six-figures. A 2018 study by NERA Economic Consulting found that U.S. households on the whole would stand to lose nearly $100 billion over the next 15 years if the credit was expanded and the cap lifted. That works out to more than $700 in increased costs per household, a high cost to pay for a projected 1 percent decline in gasoline demand. The World Economic Forum notes, “raw materials needed for batteries are extracted at a high human and environmental toll. This includes, for example, child labour, health and safety hazards in informal work, poverty and pollution.”
So, if Republicans and Democrats extend the tax credit, they will be forcing hard-working taxpayers to subsidize people like Eva Longoria.
Blogs:
Monday: Only Market Reforms Can End Scourge of Surprise Billing
Tuesday: No FDA, Breast Implants Aren’t That Dangerous
Wednesday: Watchdog Praises FCC for Fixing Rural Wireless Funding Failures
Friday: TPA Sends Letter Urging Congress to Oppose H.R.3
Media:
November 22, 2019: The Oklahoman mentioned TPA in their story, “A misguided effort to reduce obesity rates.”
November 25, 2019: Inside Sources ran TPA’s op-ed, “Onerous PURPA Requirements Have Outlived Their Usefulness.”
November 27, 2019: I appeared on Cheddar TV to talk about electric vehicle subsidies.
November 28, 2019: Townhall ran TPAF investigative reporter Johnny Kampis’ op-ed, “FCC Plan to Auction C-band for 5G Has Broad Support.”
November 29, 2019: I appeared on One America News Network to talk about TPA’s Thankful blog post and the Democratic presidential hopefuls.
December 2, 2019: The Highland County Times (Hillsboro, Ohio) mentioned TPA in their story, “Will sun shine in on solar energy projects?”
December 2, 2019: The Center Square ran TPA’s op-ed, “Federal price controls devastate rural America.”
December 3, 2019: RealClearPolicy ran TPA’s op-ed, “Warren’s War on Private Equity Isn't Just Political Posturing. It's Also Economic Poison.”
December 4, 2019: The Advocate (Baton Rouge, La.) published TPA’s letter, “John Kennedy helping to protect taxpayers.”
December 4, 2019: Inside Sources ran TPA’s op-ed, “PRO Act Would Rob Workers of the Private Ballot.”
December 5, 2019: I appeared on WBOB Radio (600 AM and 101 FM; Jacksonville, Fla.) to talk about tax cuts and healthcare.
December 5, 2019: WBFF (Fox, Baltimore) interviewed me about electric vehicle subsidies.
December 5, 2019: TPA policy director Ross Marchand appeared on “The Chosen Generation” (nationally syndicated) to talk about the “Green Act.”
December 5, 2019: ABC 7 News quoted TPA in their article, “Streetcar projects across the country struggle, cost taxpayers millions.”
December 6, 2019: Catalyst ran TPA’s op-ed, “An International Agency Could Erode American Liberties on U.S. Taxpayers’ Dime.”
Have a great weekend, and as always, thanks for your continued support.
Best,
David Williams
President
Taxpayers Protection Alliance
1401 K Street, NW
Suite 502
Washington, D.C. xxxxxx
www.protectingtaxpayers.org
