Category Archives: markets

A Health Care Coverage Step

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Alexander Acosta, Steven Mnuchin, and Alex Azar, respectively Secretaries of Labor, Treasury, and Health and Human Services, are in the process of offering one.  They’re putting together a rule that would expand HRAs, Health Reimbursement Arrangements.  These are plans that allow employers to reimburse employees for certain qualified health expenses.  Their expansion consists of two parts:

  • permit[ting] employers to offer HRAs to reimburse employees for health insurance purchased in the individual market—allowing employers to provide a contribution as significant as they would have made for the premiums of a traditional employer-sponsored plan.
  • allow[ing] employers that offer a traditional group plan to offer an HRA of up to $1,800 a year to reimburse an employee for certain qualified medical expenses such as stand-alone dental benefits.

Both of these parts would be done on an income tax-free basis for the employee.

Of course, this would compete against Obamacare, and that’s anathema for the Progressive-Democrats in the House and Senate.

Their ire notwithstanding, the rule would be that step toward competition, and competition is one of the ways of making health care and health care coverage less economically onerous to a family.

Carbon Dioxide and Bias at the EPA

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Cass Sunstein thinks there’s bias in the Trump EPA in the way the agency handles CO2.  He’s right, but not in the way he thinks.

The only way to solve the climate-change problem, and to prevent massive harm in the US, is for all the world’s big emitters [of CO2] to agree to take account of the global damage.

There’s the heart of the political concern and a demonstration of Sunstein’s bias.

Carbon’s role in the environment is its contribution to acid rain through its role as a constituent of CO2. That problem has been solved, years ago.

CO2’s role in climate is demonstrated by ice cores that show atmospheric CO2 rises after planetary warming has begun and by longer records that show, over geologic time, a lack of correlation between atmospheric CO2 and planetary temperature. That problem does not exist.

Finally, there is some overlap between environment and climate, but they are not interchangeable terms, even though Sunstein uses them so.

Pharma and Drug Prices

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The Trump administration has proposed a rule that would require companies advertising drugs to provide the list prices of those drugs in their advertising—including their television advertising.  Big Pharma is opposed, and wants instead to be left to voluntarily provide pricing information by having links in their advertising that would guide folks to a separate Web site.

I sympathize with Big Pharma on this. Government regulation already is out of hand; the Trump administration is reducing that, and this is an unnecessary addition.

There is an alternative.

The FDA could compile a list of drug list prices; region-by-region retail prices at places like Walgreens, CVS, Walmart, amazon (note that this is not an exhaustive list of retailers); and the tier within which each drug sits.  This list then could be made available on the FDA’s Web site home page above the fold.

This more central source, in addition to encouraging competition among drug companies, would encourage more competition among retailers.

In Other Parts of the World….

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A man in Austria was shocked to be handed a bill from a debt collection agency for €10,365 ($12,000) after misplacing his hotel key….

After all,

the key was a skeleton key for the entire building, and now the owner is claiming all of the hotel’s intricate locks must be replaced.

So—a hotel is careless of its security setup, and that makes its customers responsible for any potential breach.

Hmm….

Free Trade in North America

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With a Mexico-US trade agreement in nominally in hand (our two nations’ legislatures have ratify it, and our own Progressive-Democrats in the Senate are already saying #NO, #RESIST, and too many Republicans are acquiescing, though), Mexico wants Canada to join the agreement.  Mexico’s President-elect Andrés Manuel López Obrador, after speaking with Canadian Prime Minister Justin Trudeau:

There is still time to achieve a trilateral agreement[.]

And

We hope they reach that understanding so that it will be a trilateral agreement.

Certainly, Canada’s joining an agreement would be good, but first the Canadians have to get serious in their negotiations.  President Donald Trump already has offered a tariff-free régime, and Canada won’t even discuss it.  Trudeau and his Minister of Foreign Affairs, Christia Freeland, steadfastly are demanding their protectionist tariffs—dairy, for instance—remain in place.

Update: They’re in. Now it’s necessary to convince Progressive-Democrat and self-serving Republicans in the Senate to ratify the deal.