Showing archive for: “Insurance”
E-cigarette taxation: Lessons from “sin taxes”
The Economist takes on “sin taxes” in a recent article, “‘Sin’ taxes—eg, on tobacco—are less efficient than they look.” The article has several lessons for policy makers eyeing taxes on e-cigarettes and other vapor products. Historically, taxes had the key purpose of raising revenues. The “best” taxes would be on goods with few substitutes (i.e., ... E-cigarette taxation: Lessons from “sin taxes”
A Windfall for Insurers in the Medicare Part D Coverage Gap
The two-year budget plan passed last week makes important changes to payment obligations in the Medicare Part D coverage gap, also known as the donut hole. While the new plan produces a one-year benefit for seniors by reducing what they pay a year earlier than was already mandated, it permanently shifts much of the drug ... A Windfall for Insurers in the Medicare Part D Coverage Gap
A Pro-Free Market Approach to Brexit Negotiations Is Key
The terms of the United Kingdom’s (UK) exit from the European Union (EU) – “Brexit” – are of great significance not just to UK and EU citizens, but for those in the United States and around the world who value economic liberty (see my Heritage Foundation memorandum giving the reasons why, here). If Brexit is ... A Pro-Free Market Approach to Brexit Negotiations Is Key
An Apollo 13 approach to Obamacare
“Houston, we have a problem.” It’s the most famous line from Apollo 13 and perhaps how most Republicans are feeling about their plans to repeal and replace Obamacare. As repeal and replace has given way to tinker and punt, Congress should take a lesson from one of my favorite scenes from Apollo 13. “We gotta ... An Apollo 13 approach to Obamacare
Unleashing Prosperity through Smarter Financial Regulation
On February 28, the Heritage Foundation issued a volume of essays by leading scholars on the law and economics of financial services regulatory reform entitled Prosperity Unleashed: Smarter Financial Regulation. This Report, which is well worth a read (in particular, by incoming Trump Administration officials and Members of Congress), is available online. The Report’s 23 ... Unleashing Prosperity through Smarter Financial Regulation
Understanding government negotiation of Medicare drug prices
In a weekend interview with the Washington Post, Donald Trump vowed to force drug companies to negotiate directly with the government on prices in Medicare and Medicaid. It’s unclear what, if anything, Trump intends for Medicaid; drug makers are already required to sell drugs to Medicaid at the lowest price they negotiate with any other buyer. ... Understanding government negotiation of Medicare drug prices
When Past Is Not Prologue: The Weakness of the Economic Evidence Against Health Insurance Mergers
I just posted a new ICLE white paper, co-authored with former ICLE Associate Director, Ben Sperry: When Past Is Not Prologue: The Weakness of the Economic Evidence Against Health Insurance Mergers. Yesterday the hearing in the DOJ’s challenge to stop the Aetna-Humana merger got underway, and last week phase 1 of the Cigna-Anthem merger trial ... When Past Is Not Prologue: The Weakness of the Economic Evidence Against Health Insurance Mergers
What’s next for the pharmaceutical industry?
On November 9, pharmaceutical stocks soared as Donald Trump’s election victory eased concerns about government intervention in drug pricing. Shares of Pfizer rose 8.5%, Allergan PLC was up 8%, and biotech Celgene jumped 10.4%. Drug distributors also gained, with McKesson up 6.4% and Express Scripts climbing 3.4%. Throughout the campaign, Clinton had vowed to take on ... What’s next for the pharmaceutical industry?
Critics of health insurance mergers misapply the evidence and misinterpret the market
As regulatory review of the merger between Aetna and Humana hits the homestretch, merger critics have become increasingly vocal in their opposition to the deal. This is particularly true of a subset of healthcare providers concerned about losing bargaining power over insurers. Fortunately for consumers, the merger appears to be well on its way to ... Critics of health insurance mergers misapply the evidence and misinterpret the market
Senate Bill Provides Remedy for Regulatory Abuse Keeping Generics Off the Market
I’d like to begin by discussing Geoff’s post on the pending legislative proposals designed to combat strategic abuse of drug safety regulations to prevent generic competition. Specifically, I’d like to address the economic incentive structure that is in effect in this highly regulated market. Like many others, I first noticed the abuse of drug safety ... Senate Bill Provides Remedy for Regulatory Abuse Keeping Generics Off the Market
The Constitutionally-Challenged Consumer Financial Protection Bureau (CFPB) Now Directly Challenges the Lawful and Welfare-Enhancing Pay-Day Lending Industry
The Consumer Financial Protection Bureau (CFPB) is, to say the least, a controversial agency. As documented by such experts as Scalia Law School Professor Todd Zywicki, the CFPB imposes enormous costs on consumers and financial service providers through costly and unwarranted command-and-control regulation. Furthermore, as I explained in a February 2016 Heritage Foundation legal memorandum, ... The Constitutionally-Challenged Consumer Financial Protection Bureau (CFPB) Now Directly Challenges the Lawful and Welfare-Enhancing Pay-Day Lending Industry
More proposed market interventions to control drug costs
Last week, the Campaign for Sustainable Rx Pricing (CSRxP)—whose membership includes health insurance companies and other health payors, health providers, and consumers—proposed various reforms aimed at addressing the high costs of prescription drugs. CSRxP declares that their proposals will improve the functioning of the pharmaceutical market by increasing pricing transparency, promoting competition, and enhancing value. Although ... More proposed market interventions to control drug costs
