House Republicans Aim To Eliminate Tax Credits For Orphan Drugs

As part of a sweeping tax overhaul bill, House Republicans on Thursday proposed eliminating billions of dollars in corporate tax credits that have played a key role in the booming industry to develop drugs for rare diseases.

For more than three decades, pharmaceutical companies have claimed a 50 percent tax credit for the cost of clinical trials of orphan drugs, medicines intended to treat diseases affecting fewer than 200,000 people.

Sales of orphan drugs hit $36.1 billion last year, according to a report released last month by QuintilesIMS and the National Organization for Rare Disorders. And, according to EvaluatePharma’s 2017 Orphan Drug Report, orphan drugs will account for nearly 22 percent of global prescription sales, excluding generics, by 2022

Companies whose drugs are deemed orphans by the Food and Drug Administration get a package of financial incentives, including tax credits and seven years of market exclusivity.

The credits were approved as part of the 1983 Orphan Drug Act, which has been under scrutiny in the past year as the country grapples with skyrocketing drug prices. Orphan drugs routinely carry five-digit price tags and have become a lucrative market for pharmaceutical companies.

In 2018, the U.S. is expected to grant nearly $2.8 billion in orphan drug tax credits to companies, according to estimates from the Treasury Department. And the reduced tax revenue for the U.S. government under the current law would increase every year, to a projected total of $75 billion from 2018 to 2027.

As sales rise, so does the cost of the orphan drug tax credits to the U.S. government. “A billion here and a billion there and eventually it’s real money,” said Nicholas Bagley, a law professor at the University of Michigan who has studied the credits.

The National Organization for Rare Disorders said in a statement that there would be 33 percent fewer orphan drugs coming to market if the tax credit vanishes, calling it “an unprecedented decrease in the development of these life-improving therapies.” NORD said advocates for people with rare diseases had sent over 500 letters to Congress in support of the credit.

The Biotechnology Innovation Organization, a trade group, and 20 individual drug companies, including Novo Nordisk, Horizon and Sanofi, wrote to Congress late last month urging legislators to keep the credit in the tax overhaul bill. BIO vowed Thursday to work with lawmakers to save the credit.

Yet James Love of the think tank Knowledge Ecology International welcomed the potential repeal as a way to begin a conversation about “deeper reform” in the financial incentives for rare diseases. He said that cancer drugs and “huge blockbuster drugs [have] qualified for orphan tax credit[s] … and certainly provided no relief from high prices.”

Earlier this year, former Rep. Henry Waxman, one of the Orphan Drug Act’s creators and champions, co-wrote a report on high drug prices for the Commonwealth Fund that suggested restricting or replacing the tax credit. The authors of the report said they don’t take a position on the Republican tax bill.

A Kaiser Health News investigation in January, which was published and aired by NPR, found that many drugs that now have orphan status aren’t entirely new. Of about 450 drugs that have won orphan approval since 1983, more than 70 were drugs first approved by the Food and Drug Administration for mass-market use. These medicines include cholesterol blockbuster Crestor, Abilify for psychiatric disorders and rheumatoid arthritis drug Humira, one of the world’s best-selling drugs.

In March, the Government Accountability Office confirmed it would investigate potential abuses of the Orphan Drug Act after receiving a letter from Sens. Orrin Hatch, R-Utah, Chuck Grassley, R-Iowa, and Tom Cotton, R-Ark., that asked if the law needed to be changed.

This summer, the FDA announced a plan to overhaul how it handles orphan drugs and promised to eliminate a backlog in applications for drugs’ rare disease status. In a September update, FDA Commissioner Scott Gottlieb wrote he wants to ensure financial incentives are granted “in a way that’s consistent with the manner Congress intended” when it passed the law decades ago.


KHN’s coverage of prescription drug development, costs and pricing is supported in part by the Laura and John Arnold Foundation.

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Obama Takes To Twitter To Promote Obamacare Enrollment

Former president Obama encourages people to sign up for health insurance in a video.

Get America Covered/Screenshot by NPR

Former President Barack Obama took to Twitter Wednesday morning to encourage people to shop for Affordable Care Act health insurance.

Obama’s rare appeal comes as his signature health care law is under attack by his successor, President Trump, and Republicans in Congress.

Starting today, you can sign up for 2018 health coverage. Head on over to https://t.co/ob1Ynoesod and find a plan that meets your needs. https://t.co/6vYt83w74T

— Barack Obama (@BarackObama) November 1, 2017

Obama’s tweet to his more than 95 million followers includes a short video, set to jaunty music, where the former president urges people to log on to the federal insurance exchange, HealthCare.gov, and sign up for coverage for next year.

“It’s November 1, which means today is the first day to get covered for 2018,” Obama says. It’s not clear where he’s standing, but the ocean is in the background.

While the point of the video, which is on Obama’s Facebook page, too, is clearly to gin up business for HealthCare.gov, Obama takes the opportunity to defend his signature achievement. He mentions two of the law’s most popular provisions, both of which have been threatened by Republicans.

Today’s the day! You can go to https://t.co/p8DQwo89C7 and sign up for health coverage. Need a pep talk first? @BarackObama has you covered. pic.twitter.com/78DAFgUV77

— Get America Covered (@GetUSCovered) November 1, 2017

“Thanks to the Affordable Care Act, insurance companies can no longer charge you more just for being a woman, or having a preexisting condition — and that’s a good thing,” he says.

Republicans in Congress have tried over and over this year to repeal the Affordable Care Act and replace it with an alternative plan. Those efforts have failed in large part because most of the alternative ideas would end with millions fewer people having health coverage.

Still, President Trump has repeatedly said the Affordable Care Act markets are collapsing. Critics say Trump’s actions have weakened those markets because they’ve injected uncertainty into the system, leading companies to either raise premiums or pull out of the system altogether.

Average premiums for 2018 will be higher than in 2017, according to the Department of Health and Human Services. But those higher premiums are more than offset by higher government subsidies, for the 85 percent of consumers who buy insurance on the ACA exchanges and qualify for financial assistance.

An HHS analysis released this week shows the average premium for a 27-year-old making $25,000 a year is 37 percent higher, but the average subsidy rises by 73 percent.

One of Trump’s actions was to cut the budget for outreach and education surrounding this open enrollment season by 90 percent.

The Obama Twitter video is part of an effort by nonprofit groups to make up for that loss. A group of former Obama administration officials launched a campaign called Get America Covered to get the word out that open enrollment begins November 1 and runs for six weeks.

Using Obama’s star power to spread the word could be pretty effective. But it’s far from certain that a Twitter video can make up for the millions of advertising and outreach dollars cut by the Trump administration.

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Poll: 1 In 3 Latinos Report Discrimination Based On Ethnicity

About a third of Latinos in America say they’ve been personally discriminated against when it comes to applying for jobs, being paid equally or considered for promotions — and when trying to rent a room or apartment or buy a house. Slightly more (37 percent) say they’ve personally experienced racial or ethnic slurs because of their race or ethnicity.

These are some of the key findings NPR is releasing Wednesday from a poll done with the Robert Wood Johnson Foundation and the Harvard T.H. Chan School of Public Health. The survey of 3,453 adults looked at a wide range of issues in many groups and included 803 adults identifying as Latino or Hispanic. The poll also surveyed African-Americans, white Americans, Native Americans, Asian-Americans and LGBTQ adults. We are releasing data by each of these groups on a weekly basis.

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Overall, Latinos reported substantial and significant discrimination in their day-to-day lives. In addition to those who said they’d been slurred, 33 percent say they’ve experienced offensive comments or negative assumptions about their race or ethnicity at some point in the past. Nonimmigrant Latinos and Latinos with a college degree are both more likely to report various forms of one-to-one personal discrimination.

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When we drilled down into the data, we found that the experience for immigrants and nonimmigrants varied significantly in employment as well, with immigrant Latinos experiencing discrimination on the basis of race and ethnicity more than twice as often as nonimmigrant Latinos. There were also divides based on what kind of neighborhood people live in.

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The survey was a large, nationally representative sample, conducted from Jan. 26 to Apr. 9. The findings on Latino Americans have a margin of error of plus or minus 4.5 percentage points at the 95 percent confidence level. The poll is part of a larger NPR project, “You, Me and Them: Experiencing Discrimination in America.”

Our poll has its roots in research showing disparities in the health and life expectancies of minorities in America. There is a growing body of research showing that day-to-day exposure to discrimination increases the risk of various diseases, raises the rate of premature birth and may decrease overall life expectancy.

Dr. David Williams, a Harvard professor, put it this way in a recent interview with NPR’s Michel Martin:

“The research indicates it is not just the big experiences of discrimination, like being passed over for a job or not getting a promotion that someone felt they might have been entitled to. But the day-to-day little indignities affect health: being treated with less courtesy than others, being treated with less respect than others, receiving poorer service at restaurants or stores. Research finds that persons who score high on those kinds of experiences, if you follow them over time, you see more rapid development of coronary heart disease. Research finds that pregnant women who report high levels of discrimination give birth to babies who are lower in birth weight.”

This extends even to doctors’ offices, our poll finds. In particular, 25 percent of Latina women told us they had been personally discriminated against when going to a doctor or health clinic.

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“A substantial share of Latinos, particularly Latina women, report they have been discriminated against in trying to seek medical care — and when they need it, they often avoid getting it,” says Robert J. Blendon, the director of our poll and professor of health policy and political analysis at the Harvard Chan School. “And that can create major health problems when people are so anxiety-ridden about how they were treated that they don’t seek care when they think they actually need it.”

Another major factor in people’s daily environment is the intersection between their perception of safety and their fear of discrimination. While there have been many reports over the years maintaining that Latinos, in particular, are afraid of calling the police when in need, our poll found wide regional and age variations on this score.

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Other reports in the coming days will focus on the relatively low rate of college enrollment and more on the generation gap in the kinds and amount of discrimination experienced by millennials versus people in other age groups.

Our series on discrimination, “You, Me and Them,” will continue through December. Last week we presented the results for African-Americans. In coming weeks, we will look at results from white Americans, Native Americans, LGBTQ adults, and Asian-Americans, as well as look at gender discrimination as it affects all races, ethnicities and identities.

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Need Help Picking An ACA Health Plan? Some States Are Reaching Out

Minnesota’s ACA insurance exchange, MNsure, is spending state money this year to hire health care navigators who reach out to consumers to answer questions and help them find the right health plan.

Mark Zdechlik/MPR News

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Mark Zdechlik/MPR News

If you buy insurance on your own and have been paying attention to the Affordable Care Act, you’ve probably heard that open enrollment for 2018 plans has just started and the government is spending a lot less money this year to get the word out.

That’s true in the 39 states that rely on HealthCare.gov. But circumstances are different in some of the 11 states plus the District of Columbia that run their own ACA websites and marketplaces.

They’re in charge of their own marketing and enrollment assistance programs, so are somewhat immune from Trump administration actions — and inaction — that critics have warned will undermine 2018 individual market enrollment.

“We’re in a very different position than the federal government,” says Allison O’Toole, who runs Minnesota’s exchange, MNsure. “I see a lot of action coming out of Washington designed to destabilize the market and to hinder enrollment. I have the exact opposite goal in Minnesota.”

In its first year of managing the sign-ups, the Trump administration slashed the marketing budget most states rely on for the federally run insurance exchange by 90 percent. The open enrollment period is shorter and HealthCare.gov, the federal website, will curb its hours on all Sundays during the sign-up period, except the last one.

A recent analysis by the chief marketing officer of HealthCare.gov under President Obama estimates that the marketing cuts alone may reduce next year’s enrollment by at least 1.1 million people.

Questions about enrollment?

The federal marketplace English-language website: HealthCare.gov

The federal marketplace Spanish-language website: CuidadodeSalud.gov

The federal call center for consumers, available 24/7: 1-800-318-2596

The Kaiser Family Foundation’s FAQ on the health law

In contrast, MNsure is planning another all-out annual enrollment push with TV ads and on social media. It will also pay other organizations to help spread the word; for example, MNSure gave $500,000 to Portico Healthnet, a nonprofit health care navigator group, for outreach efforts.

The money helps a lot.

“Portico Healthnet was able to staff up — so we have more navigators on staff now to prepare ourselves to meet the needs of the open enrollment demand,” says Meghan Kimmel, president of the organization, which is based in St. Paul. “We are anywhere we can be where we can talk with people about access to coverage.”

Minnesota’s Human Services Commissioner Emily Piper, right, and Minneapolis Mayor Betsy Hodges, second from left, joined MNsure CEO Allison O’Toole, and Hodan Guled, left, at a recent enrollment launch event in Minneapolis.

Mark Zdechlik/MPR News

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Mark Zdechlik/MPR News

The picture is very different in states like Mississippi, which relies on HealthCare.gov, the federal exchange. Open enrollment in these states is shaping up to be much different under President Trump than it was under President Obama.

“We’re still enrolling,” says Ginni Tran, who works as an ACA navigator at Mercy Housing & Human Development in Gulfport, Miss., “but we’re not aggressively outreaching and educating” because there isn’t enough money.

Tran’s office helps Gulf Coast seafood industry workers find health plans on HealthCare.gov. Cuts to federal enrollment assistance translated to a 70 percent smaller budget for Mercy’s open enrollment activities.

Mississippi’s uninsured rate has fallen to 12 percent, but remains tied for third worst in the United States. Gov. Phil Bryant has staunchly opposed the Affordable Care Act and did not expand Medicaid.

Kimmel and others says what’s happening in states using HealthCare.gov underscores the value of Minnesota having its own exchange.

At least one longtime MNsure critic, however, remains unpersuaded. State Rep. Greg Davids, a Republican, dismissed the notion that cutting back on the open enrollment period and slashing the promotional budget will discourage enrollment. He favors having the state turn to HealthCare.gov, instead.

“We need to get rid of MNsure,” Davids says. “They’re an unnecessary duplicate layer of government that hasn’t worked.”

This story is part of NPR’s reporting partnership with Minnesota Public Radio and Kaiser Health News.

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With ACA Plans A Tougher Sell, Insurers Bring On The Puppies

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Florida BlueYouTube

Can a puppy video get you to buy health insurance through the Affordable Care Act exchanges? Florida Blue, a major insurer in that state, hopes the answer is yes.

“It’s hard to resist puppies, right? Let’s just be honest,” says Penny Shaffer, the insurer’s South Florida regional market president, who talked to WLRN’s Sammy Mack. In the video, puppies tumble while the announcer pitches, in Spanish, affordable plans and personalized service.

According to a Commonwealth Fund analysis, Hispanics have seen the biggest increase in number of people insured of any ethnic group since the Affordable Care Act was passed. One zip code in the heart of Cuban Miami saw the most marketplace signups of any zip code in the country a couple of years ago. And market research shows that Latina women are very active video sharers.

Open enrollment for health insurance on the Affordable Care Act exchanges exchanges starts Wednesday. For anywhere from six weeks to a few months, depending on the state, people can buy plans on the individual markets for 2018.

But the Trump administration has cut the ACA advertising budget by 90 percent, as well as money to pay navigators, people who help customers pick a plan and enroll.

So across the country, municipalities, insurers and grassroots organizations are working even harder to to get the word out that the ACA is still in place. That explains the puppies.

California also sees Latinos as a key group for outreach, reports KQED’s April Dembosky. The video strategy of Covered California, that state’s marketplace, is a little different, emphasizing how important insurance is for unexpected illness.

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Covered CaliforniaYouTube

In Phoenix, Ariz., KJZZ’s Will Stone reports that the Arizona Public Interest Research Group is part of a grassroots coalition advertising open enrollment. They are hoping to get younger people to sign up, because younger people tend to be healthier and less expensive and insurance pools need them to help pay for older and sicker people.

Diane Brown, executive director of the Arizona Public Interest Research Group, talks to college students about the benefits of buying health coverage on the exchanges.

Will Stone/KJZZ

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Will Stone/KJZZ

But Diane Brown, who heads Arizona PIRG, says consumer confusion over health insurance, complicated enough to wade through on a good day, is exacerbated by the political wrangling over the ACA.

Pennsylvania’s insurance commissioner’s office is spending some of its department’s budget on education, including setting up its own online tool to help guide consumers through how to pick a plan, reports Elana Gordon from WHYY.

And in Tennessee, Blake Farmer of Nashville Public Radio says that even though the navigator budget was cut, it was cut only by 15 percent and the state found enough savings in other places to keep roughly the same numbers.

Moving along to Texas, KUT’s Ashley Lopez finds that in the bigger cities, local taxpayers are filling in the gap. Austin is spending a lot more money this year on outreach efforts. Michelle Tijerina works for Central Health, which provides health care for low-income people in Travis County and is funded by local property taxes.

“We will have ads on radio — English and Spanish. We will be on Facebook. We will have Google ads and banners. We will be out in the community, talking to schools,” Tijenera says.

Tijerina says Central Health is also hiring twice as many people this year to help folks sign up once enrollment starts.

This story is part of a reporting partnership with NPR, local member stations and Kaiser Health News.

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If You're Shopping For Health Insurance, Make Sure You're Paid Up On Old Plan

People hoping to get health insurance coverage in 2018 may need to make sure their 2017 premiums are paid.

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The 2018 annual open-enrollment period for coverage on the health insurance marketplaces starts Wednesday. But if you don’t take care of lingering issues from your past coverage, they may come back to haunt you.

Unpaid premiums

A new rule will allow some insurers to require you to pay any back premiums you owe for the 12 months prior to the effective date of your new coverage.

The rule, which became effective in June, generally applies only if you try to enroll in a plan with the same insurer, not if you choose coverage from another company. It’s up to insurers to decide whether to come after you for the money.

But in many parts of the country, there may be only one insurer offering coverage. In those cases, if you’ve fallen behind on payments, “you really won’t be able to escape this policy,” said Tara Straw, a senior health policy analyst at the Center on Budget and Policy Priorities.

Before invoking the rule, insurers have to notify you that they plan to hold you accountable in the future for missed payments.

The Affordable Care Act offers some protection for people who fall behind on their payments. Under the law, you have a 90-day grace period in which to catch up on unpaid premiums. Once that grace period ends, your coverage would be canceled retroactive to the end of the first month of delinquency and you’d be responsible only for your portion of the first month’s unpaid premium. (You wouldn’t be responsible for premium tax credits paid on your behalf to the insurer.)

But if you stop paying your premiums during the last three months of this year, you could get hit with a bill for a full three months of premiums if you re-enroll for 2018 coverage. This is because your 90-day grace period hasn’t ended.

“Effectively your coverage has never terminated, and therefore you owe for the full period,” said Timothy Jost, professor emeritus of law at Washington and Lee University in Virginia.

If you want to drop a marketplace plan, it’s not enough to just stop paying premiums.

“Make sure you go to the marketplace and terminate your plan,” said Straw. “Otherwise you could be on the hook for these payments during open enrollment or during a special enrollment period if you try to sign up again.”

Unfiled tax documents

Most people who get marketplace coverage qualify for tax credits that provide money to help them pay their premiums. The assistance is available to consumers whose income is less than 400 percent of the federal poverty level (about $48,000 for one person). If you had a marketplace plan in 2016, you were supposed to include a special document — IRS Form 8962 — when you filed your 2016 federal income taxes this year. This document reconciled how much you received in advance premium tax credits against how much you should have received based on your actual income for the year.

If you didn’t file the form with your taxes, you can still sign up for insurance coverage but you wouldn’t qualify for subsidies.

To fix that problem, you’ll generally have to file the Form 8962, along with the second page of your income tax Form 1040 and the 1095-A form you received from the marketplace showing your 2016 enrollment details, said Straw. If you want to receive premium tax credits starting in January, you’ll need to get that done before the open-enrollment period ends Dec. 15.

This issue will primarily affect people who are automatically re-enrolled in a plan for the following year, as were 31 percent of marketplace customers last year (see Table 2 on Page 6.)

If you sign into your marketplace account to update your income and other personal information — as everyone should — you’ll be asked whether you’ve filed and reconciled your taxes. That is a signal the issue needs to be addressed.

Some policy analysts are concerned that this filing requirement will be particularly challenging for people whose annual income is below the usual threshold required to file an income tax return (about $10,000 for one person or $20,000 for a married couple) but who must do so now because they receive premium tax credits paid in advance.

“It’s confusing enough, and many people don’t remember that they now have to file an income tax form,” said Mara Youdelman, managing attorney at the National Health Law Program, which has been working to ensure people receive proper notification that their benefit may be at risk if they don’t comply with filing requirements.


Kaiser Health News is an editorially independent news service that is part of the nonpartisan Henry J. Kaiser Family Foundation. Follow Michelle Andrews on Twitter: @mandrews110.

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Lingering Power Outage In Puerto Rico Strains Health Care System

Dr. Eduardo Ibarra checks the blood pressure of Carmen Garcia Lavoy in the Toa Baja area of Puerto Rico. He’s been making house calls in the area with nurse Erika Rodriguez.

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Jason Beaubien/ NPR

Forty days after Hurricane Maria struck Puerto Rico, most of the U.S. territory remains without power.

Over the weekend, the island’s power company fired a key contractor working to restore electrical service. The cancellation of the $300 million contract with Whitefish Energy, after the Federal Emergency Management Agency and other agencies expressed significant concerns about the deal, is expected to further delay the return of power throughout Puerto Rico.

The Puerto Rican government has prioritized getting power back to hospitals. Many smaller clinics and doctor’s offices, like other businesses on the island, still don’t have electricity.

Take, for instance, San Patricio Medflix, a diagnostic imaging center in greater San Juan. The center has state-of-the-art MRI, CT and nuclear medicine equipment.

Problems with a diesel generator recently led to the cancellation of 70 patients’ appointments, says Dr. Fernando Zalduondo Dubner, medical director of San Patricio Medflix in San Juan, Puerto Rico.

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Dr. Fernando Zalduondo Dubner, medical director imaging center, says his biggest job is battling with a heavy-duty diesel generator to keep the power on. “We are having trouble with it now as we speak,” he says.

With Puerto Rico’s electric grid down since Sept. 20, the diesel generator, housed in a metal box the size of a shipping container, has been the sole source of power for his four-story medical complex.

Fuel has been a big problem. The generator consumers about 500 gallons of diesel a day.

In the weeks after the hurricane hit, the diesel supply was incredibly tight. Zalduondo ended up buying whatever fuel he could get from whoever was selling it. But some of it was of such poor quality that it gunked up the generator. “The other day we had to cancel 70 patients that were here because we had to rely 100 percent on the diesel plant, and it just got clogged from all kinds of diesel that had been around,” he says.

For Zalduondo the stakes are higher than keeping the lights on. MRI machines like his need liquid helium to cool their superconducting magnets. If the MRI scanner loses power for very long, the helium overheats and evaporates quickly. If the helium level gets too low, the scanner can be permanently damaged.

Another radiologist in San Juan thought he had all the diesel, helium and other supplies he needed to ride out Hurricane Maria only to have his MRI machine seize up after looters drained his diesel tank. Early on Saturday morning engineers from Siemens, a medical equipment maker, were able to refill the center’s last working MRI machine’s liquid helium.

The hurricane’s winds also opened a crack in the imaging center’s roof that let water pour into much of the top floor. As the crisis has dragged on, some of Zalduondo’s employees have packed up and headed to the mainland.

“Practicing high-end radiology in Puerto Rico is extremely challenging in the best of times,” he says. “It seems like all the conditions conspire to make us radiologists leave Puerto Rico.”

The electric blackout isn’t just affecting high-end medical equipment that requires liquid helium.

Dr. Eduardo Ibarra says the conditions in Puerto Rico, including the lack of power, are killing patients who otherwise would survive.

Ibarra is making house calls to mostly elderly patients in devastated parts of Toa Baja just west of San Juan: “I would say that of the ones I visit, 100 percent don’t have electricity.

That means his patients don’t have air conditioning or even fans to keep cool, a situation which aggravates bedsores for his bedridden patients. A lot of people still don’t have running water, never mind hot water, so sanitation is poor. Their refrigerators aren’t working either, so some medicines are going bad. Some dialysis clinics have shut down, too, forcing patients to search for alternatives.

“Between no light and no water and no money and no help … the patients are getting very sick,” he says.

Even as October draws to a close, power has officially been restored to only 30 percent of customers in Puerto Rico.

On a hillside in Toa Baja, Carmen Garcia Lavoy’s relatives and neighbors are rebuilding her home with hand tools. The hurricane blew the roof and walls out of her house leaving behind a tiled cement slab littered with debris.

Dr. Ibara comes to see Garcia, who is 77. She has a host of medical issues, including high blood pressure. Last year she had open heart surgery. She also can’t see well.

Garcia she’s been very anxious living in the basement of the destroyed house with her son. Dr. Ibarra examines her in the open air of what used to be her living room. As he takes her blood pressure she breaks down crying and says she hasn’t been able to get to a doctor since the storm. “I’ve been dying to speak to my cardiologist and I’ve already cancelled or lost two appointments with him,” Garcia says.

Ibarra writes her a prescription for a blood pressure medicine that she had run out of. Garcia clutches the prescription to her chest as if it’s a treasure.

The official death toll from Hurricane Maria stands at 51, but Ibarra says far more people than that have likely died as a result of the storm. Doctors don’t write “hurricane” as the cause of death on a death certificate, he says, “the physician puts cardiac arrest, respiratory arrest.”

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Shop Around: Subsidies May Offset Your 2018 Health Insurance Price Hike

Consumers could get cheaper coverage overall because higher subsidies are cutting out-of-pocket costs.

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It’s time to start shopping for health insurance if you’re one of the millions who buys it on an Affordable Care Act exchange.

Open enrollment for 2018 starts Wednesday, and new numbers released by the Trump Administration show that the average cost of a benchmark policy will be about 27 percent higher next year.

But that’s just the headline. The details suggest there’s good news for lots of people who are willing to shop around a bit for insurance.

“In theory anyone who gets a subsidy should do better next year,” says Charles Gaba, an analyst who runs the web site ACASignups.net. “I have one piece of advice: Shop around.”

An analysis released Monday by the Department of Health and Human Services shows that while the average premium is going up, the average subsidy to help defray that cost is going up even more. The average tax credit offered to people to cut the price of their insurance will rise in 2018 to $555 — up 45 percent from this year’s average credit of $382.

That means many people can take that larger tax credit and buy better insurance for less money. The HHS report shows that about 80 percent of people who buy insurance on the federal exchange could get a policy for $75 a month or less. Last year, policies that cheap were available to only about 71 percent of enrollees, the study shows.

And many people who didn’t qualify for subsidies in past years might get one for 2018, Gaba says. That’s because the subsidies are based on two things — the federal poverty level and the insurance policy’s sticker price — and both of those are going up.

People with gross incomes between 138 percent and 400 percent of the federal poverty level qualify for subsidies to help pay their premiums. That means, for 2017 policies, an individual with a gross income below $47,520 (or a family of four whose income is less than $97,200) can get a subsidy. Because of inflation, those numbers rise to $48,240 and $98,400 for policies sold this fall for 2018.

“There are people who didn’t qualify for a subsidy last year who won’t even log on and try again,” he says. “That could mean thousands of dollars” in discounts that they forego just because they don’t expect to qualify.

The analysis by HHS shows that the number of insurance companies selling plans on the exchanges will drop from 167 for 2017 policies to 132 for 2018. That means about 30 percent of consumers, particularly in rural communities, will have only one company offering a handful of policies to choose from this fall.

But the individual experiences of shoppers will vary widely.

For example, a 35-year-old woman in Ames, Iowa who earns $35,000 a year and wants to buy insurance for herself on Healthcare.gov will qualify for $445-a-month in premium subsidies. The website shows five policies available with varying levels of benefits, and prices ranging from $155 a month to $351.

The same woman in St. Petersburg, Fla., by contrast, has no fewer than 56 different policies available on the federal exchange ranging in price from $222 a month to $716.

The headline premium increases are due in part to market factors and in part to recent actions by the Trump administration.

HHS earlier this month said it will no longer reimburse insurance companies for discounts they are required by law to offer to lowest-income policy holders. The discounts are known as cost-sharing reductions because they reduce the amount people have to spend on co-payments and deductibles.

The president has been threatening all year to cut off those payments because Congress never appropriated money for them.

Insurance companies responded to those threats by raising rates in many states to make up for the lost revenue.

Blue Cross and Blue Shield of North Carolina boosted premiums on average by 14 percent.

“The biggest single reason for the sharp increase in rates is the lack of federal funding for cost-sharing reductions,” Briand Tajlili, the company’s director of actuarial and pricing services, said in a blog post.

Oscar Health added a surcharge of 10 percent to its benchmark plans in California at the direction of that state’s insurance commissioner, says spokesman Khan Shoieb. But in New York — which has a basic health plan for low-income residents, so very few people get the cost-sharing discounts — the company raised premiums by only one-tenth of one percent.

The co-founders of Oscar, Mario Schlosser and Josh Kushner (brother of Trump’s son-in-law and adviser Jared Kushner), said in an opinion piece published by Axios that they expect many policies to be more affordable in 2018.

As premiums rise, subsidies to pay those premiums also rise for the 85 percent of people who buy insurance through the ACA exchanges and qualify for subsidies. So many people will see little change in their own costs.

And some will see their costs decline.

“Because insurers increased premiums to compensate for the loss of CSR payments, exchange customers who are eligible for premium subsidies will actually see more affordable options than they otherwise would have,” says Dianna Welch, an actuary at the consulting firm Oliver Wyman who did an early study showing the effect.

A report by the Kaiser Family Foundation shows that many companies only raised rates on their so-called silver plans, which are the policies that the ACA subsidies are based upon. But consumers are free to use their subsidies to buy any policy sold on the exchange. So a customer could take their bigger subsidy and buy a policy whose price hasn’t done up.

The Urban Institute, a left-leaning think tank in Washington, D.C., says those deals may attract more people into the marketplace. As many as 600,000 more people might buy insurance next year, the institute estimates.

By most accounts, however, that estimate is optimistic. Throughout the year, the Trump administration and Republican leaders in Congress have talked about repealing the Affordable Care Act, and the president himself has repeatedly declared Obamacare “dead.”

Those pronouncements, combined with news that insurance premiums (before subsidies) are going up, could scare lots of people away from the marketplaces.

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