Democrats Aim To Shore Up Medicare By Raising Taxes On Some High Earners
Senate Democrats are expected to soon submit legislative language to the parliamentarian for review. The proposal would raise an estimated $203 billion over ten years in order to push out the start of Medicare insolvency from 2028 until 2031.
AP:
Dems Want To Tax High Earners To Protect Medicare Solvency
Senate Democrats want to boost taxes on some high earners and use the money to extend the solvency of Medicare, the latest step in the party’s election-year attempt to craft a scaled-back version of the economic package that collapsed last year, Democratic aides told The Associated Press. Democrats expect to submit legislative language on their Medicare plan to the Senate’s parliamentarian in the next few days, the aides said. (Fram, 7/7)
The New York Times:
Democrats Propose Raising Taxes On Some High Earners To Bolster Medicare
The proposal is projected to raise $203 billion over a decade by imposing an additional 3.8 percent tax on income earned from owning a piece of what is known as a pass-through business, such as a law firm or medical practice. The money that would be generated by the change is estimated to be enough to extend the solvency of the Medicare trust fund that pays for hospital care — currently set to begin running out of money in 2028 — until 2031. (Cochrane, Sanger-Katz and Tankersley, 7/7)
Politico:
Dems' Climate And Tax Agenda To Consume Congress In July
Negotiators are still ironing out key details, but Democrats are signaling that as soon as next week they will begin arguing their case to the Senate rules chief on why the package should pass with a simple majority in the chamber. No one is getting their hopes too high in a party still reeling from Manchin’s rejection of Build Back Better, Democrats’ previous version of the legislation. (Everett and Levine, 7/7)
In other news about Medicare costs —
Stat:
Drug Companies Will Have To Start Refunding Medicare For Certain Drugs
Starting next year, pharmaceutical companies will have to repay Medicare for any unused amount of drugs that come in single-dose vials. On Thursday Medicare implemented this new provision as part of its broader annual rule that updates physician payments for 2023. (Herman, 7/7)
AP:
Northern West Virginia Hospital Settles With Feds For $1.5M
A hospital in West Virginia’s Northern Panhandle has agreed to pay $1.5 million to the federal government to settle allegations that the medical center provided financial incentives to physicians for referring Medicare patients there, U.S. Justice Department officials said Thursday. (7/7)
