Friday 30 June 2017

Wonkbook: Trump loves the Senate health-care plan. It would break all of his promises.

By Matt O'Brien President Trump has said his health-care pl...
 
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(AP Photo/Evan Vucci, File)

By Matt O'Brien

President Trump has said his health-care plan will be "something terrific" that will "lower premiums and deductibles" and have "insurance for everybody" without cutting Medicaid.

Senate Republicans, though, apparently didn't get the memo, given that that their health-care bill would break every one of these promises — not that Trump seems to have noticed.

The big picture is that the Senate plan would, over the next decade, cut nearly $1.2 trillion of health- care spending for the poor and middle class to pay for $700 billion in tax cuts for corporations and the rich. The slightly more detailed one being that $408 billion of these cuts would come out of the Affordable Care Act's health insurance subsidies and $772 billion out of Medicaid. In any case, though, the unsurprising result is that spending $1.2 trillion less on health insurance for people would, according to the nonpartisan Congressional Budget Office, lead to 22 million fewer people having it in 10 years' time.

Republicans, in other words, would give people a choice between plans they couldn't afford to buy and plans they couldn't afford to use. That's the only thing you can say about pushing people into plans that would make them pay a third of their income in deductibles. Indeed, the <a href="https://twitter.com/larry_levitt/status/878605553705943040">Kaiser Family Foundation</a> says that everyone making $18,090 or less would see their deductibles go from $255 under Obamacare to $6,105 under the Senate bill.

Trump, though, seems blissfully unaware of all this.

Read more on Wonkblog.

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 The big consequence of the Amazon-Whole Foods deal no one's talking about

Amazon has proved its power to disrupt markets. Now its proposed purchase of Whole Foods has some small farmers and food producers worried that they could be next in line.

So say organic activists, farmers' advocates and economists who are just beginning to process the potential ramifications of Amazon's bid to buy Whole Foods, the country's largest organic retailer.

The news, announced June 16, has already jolted grocery store stocks and prompted rampant speculation about the future of  food delivery and bricks-and-mortar stores. But some small farmers and manufacturers are also starting to look at Amazon's record in other fields — and worry that the retail giant will use its market power to further centralize and corporatize theirs. (Amazon.com chief executive Jeffrey P. Bezos owns The Washington Post.)

Such a move stands to boost large, industrialized organic operations, to the detriment of small and midsize players. But the real harm may come to the organic brand if Amazon pushes for price concessions that lead producers to compromise on environmental and formulation standards.

Those price pressures have already driven major changes in Whole Foods' supply chain and within the organic industry as a whole, which has consolidated in the face of increased competition. But at Whole Foods, sourcing from small producers has remained a priority — and some worry that Amazon will not be so protective of them.

"Whole Foods has been willing to work with [midsize farmers and producers] to take on added costs, and it's made a huge difference in their ability to make a living," said Scott Marlow, executive director of Rural Advancement Foundation International, a farmer advocacy group. "There is real concern about what will happen after it gets acquired."

A representative from Whole Foods said the company "remains committed" to its small and midsize producers. Amazon declined to comment on the record.

Read more on Wonkblog.

 
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