An­a­lysts ex­pect debt-ceil­ing pact to be reached by Aug. 2

Modern Healthcare - - Late News -

An­a­lysts at equity re­search firm Op­pen­heimer & Co. say they be­lieve a debt­ceil­ing agree­ment could be reached by Aug. 2, and they ex­pect a fi­nal deal to in­clude up to $150 bil­lion in cuts to fed­eral health pro­grams over the next 10 years. “We ex­pect that tax in­creases in the form of closed loop­holes and scaled-back sub­si­dies to ethanol and oil com­pa­nies will be ex­changed for at­ten­u­ated to­tal cuts to fed­eral health pro­grams of roughly $100 bil­lion to $150 bil­lion over the next decade,” lead an­a­lyst Michael Wieder­horn and an­a­lysts Matt Niren­berg and Kin­jal Bhatt wrote in a re­search note is­sued as Pres­i­dent Barack Obama and con­gres­sional lead­ers en­tered the week­end with broad dis­agree­ments over the frame­work for a deal and plans to meet Sun­day. The an­a­lysts also pre­dict that the Med­i­caid main­te­nance-of-ef­fort pro­vi­sion—in­tro­duced in the Amer­i­can Re­cov­ery and Rein­vest­ment Act of 2009 and ex­panded in last year’s health law—will be re­pealed as an at­tach­ment to the res­o­lu­tion. Repub­li­can lead­ers in Congress in­tro­duced leg­is­la­tion this year to re­peal the main­te­nance-of-ef­fort pro­vi­sion. Mi­nor­ity Leader Nancy Pelosi said in a news con­fer­ence af­ter White House talks last week that House Democrats would not sup­port Medi­care cuts as part of a debt­ceil­ing deal.

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