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Inflation eases in May, but major relief on interest rates not coming soon

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Inflation eases in May, but major relief on interest rates not coming soon

The rate of inflation eased slightly last month, the government said Wednesday, but the financial squeeze that Americans are feeling is not likely to let up anytime soon, especially in high-cost California.

That’s because a residue of sharply higher prices left behind by the COVID-19 pandemic still weighs on the pocketbooks and psychology of consumers.

Prices of new and used cars and trucks, for example, are 27% higher than before the pandemic, even though they went down 3.4% in May from a year earlier, according to the report from the Bureau of Labor Statistics. Much the same is true of other consumer goods and services, including dining out and personal care services such as hair salons as well as housing.

And there won’t be much relief on interest rates in the near term. The Federal Reserve has raised interest rates to the highest level in more than two decades to fight inflation, and on Wednesday policymakers said the fight wasn’t over.

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Despite previous expectations of multiple rate cuts this year, fed officials projected just one quarter-point rate cut in 2024 in its benchmark interest rate, which currently is in the range of 5.25% to 5.5%.

The Fed, in its statement, said the economy was growing at a “solid pace,” with strong job gains and low unemployment. And Chairman Jerome H. Powell nodded to Wednesday’s better-than-expected inflation numbers.

“We do see today’s report as progress and as building confidence,” he said at a news conference. “But we don’t see ourselves as having the confidence that would warrant beginning to loosen [monetary] policy at this time.”

According to inflation data released Wednesday, overall consumer prices were up 3.3% in May from a year earlier. That’s down slightly from an annual inflation rate of 3.4% in April but still well above the Fed’s 2% target.

“We still need several more months of this, but the fundamentals are encouraging,” said Paul Ashworth, chief North America economist at Capital Economics, a research firm.

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Other experts were less sanguine about the near-term inflation outlook: “It’s a maddening, sticky, stubborn situation,” said Dan North, senior economist at Allianz Trade, a credit insurance firm.

Both economists and political analysts have been puzzled that President Biden’s standing with the public on the economy has been languishing despite steady growth, strong job gains, and significant improvement in inflation. A big part of the answer is that people are still feeling the aftershocks of price increases in 2021 and 2022, when inflation peaked at 9.1%.

The costs of a broad range of everyday goods went up very sharply in those two years, and they’re not likely to return to pre-pandemic levels soon, if ever. The spillover effects are still playing out.

New vehicle prices, for example, went up by double-digit percent mostly in 2022, but auto insurance premiums, partly reflecting the higher car costs, started taking off last year and were up 20% in May from a year earlier.

Housing inflation, including rising rents and what are called homeowners’ equivalent rents, has been especially sticky, remaining in the range of 4.5% to 4.7% this year. That’s a particular concern in California, where the housing market has soared beyond the reach of most would-be buyers and high interest rates have only compounded the problem.

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Despite broadly higher prices, analysts note that workers’ wages have been outpacing inflation, meaning that their purchasing power overall hasn’t weakened. In May, average weekly earnings were up 3.8% from a year earlier — a half point higher than inflation, according to a separate government report.

Still, most people living today have never experienced the kind of sharp, broad inflation that hit the U.S. during the pandemic.

“Even if you had a job, inflation is stressful because it forces you to think about day-to-day purchases,” said Aditya Bhave, senior U.S. economist at Bank of America Global Research.

People may not get over the inflation gloom and get used to the new price levels, he said, until they have “fully internalized the fact that their wages have also grown.”

But in large part because of the incremental gains in income and job gains, the higher costs have not stopped people from spending.

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Consumer spending, which accounts for about two-thirds of U.S. economic activity, is expected to grow by a solid 2% this year.

Wednesday’s report showed that annual inflation also slowed in the Pacific coast region in May but is running above the nationwide average, at 3.7%, in part because of higher price increases for food, transportation and gas.

Housing inflation in May was 4.6% for the U.S. and 4.5% for the Pacific coast states, including Alaska and Hawaii.

Analysts are expecting inflation across the country to come down very slowly in the remaining months of the year, if at all. Prices for many goods, including appliances and new cars, dropped in the second half of last year, and inflation slowed sharply for other items and some services as well, all of which will make year-over-year comparisons more difficult to show favorable readings.

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How the ‘Wicked’ Movies Boosted the Musical’s Broadway Sales

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How the ‘Wicked’ Movies Boosted the Musical’s Broadway Sales

Oct. 30, 2003

Broadway Opening

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Kristin Chenoweth and Idina Menzel in the Broadway debut of “Wicked” at the Gershwin Theater.

“Wicked” is an undisputed juggernaut — one of the biggest productions in musical theater history. The stage show, by the composer Stephen Schwartz and the librettist Winnie Holzman, has grossed $1.8 billion on Broadway, and $6.2 billion globally. Worldwide, it has been seen by more than 72 million people.

But none of that was a foregone conclusion. Based on Gregory Maguire’s 1995 novel, which in turn was based on L. Frank Baum’s “The Wonderful Wizard of Oz,” the musical had a so-so reception during its pre-Broadway run in San Francisco in the spring of 2003. In New York that fall, it divided critics when it opened on Broadway at the Gershwin Theater, starring Idina Menzel as the green-skinned “wicked witch,” Elphaba, and Kristin Chenoweth as her frenemy, Glinda, a.k.a. the Good Witch of the South. (“There’s Trouble in Emerald City” was the headline on the review in The New York Times.)

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“You wake up the morning after opening night, and some of those notices were pretty devastating, and you think, ‘Oh, well, this is the final word,’” Mantello said. “But then the audiences are telling you a completely different story.”

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Menzel performed “Defying Gravity” at the 2004 Tony Awards, and took home the prize for best leading actress in a musical.

The production pretty quickly became a fan favorite, and over the years, audiences made the show their own. The “Wizard of Oz” base was, of course, a huge factor — the 1939 film is a much-loved American classic — but, also, the musical’s depiction of female friendship became a central part of its allure, and kept audiences returning for repeat viewings.

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March 23, 2006

1,000th Broadway Performance

“Once word kicked in, it took on a life that none of us could have ever predicted,” Mantello said. “It was the audience, and not a critical consensus, that turned it into the hit that it became.”

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It’s a hit! Fans waiting for Menzel’s autograph outside the Gershwin Theater in May 2004.

Menzel, the original Elphaba, won a Tony Award for best leading actress in a musical in 2004. In 2005, the day before her final performance, she fell through a trap door onstage; she couldn’t perform at her last show, but made a cameo in a red tracksuit.

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Sept. 27, 2006

‘Wicked’ International

The show expanded rapidly, and now has a global footprint. The London production opened in September 2006, after the prior year’s introduction of a North American tour and a production in Chicago, where it ran for three and a half years. Los Angeles, Japan and Germany began in 2007; and Australia in 2008. In the years since, productions have run in the Netherlands, Mexico, South Korea and Brazil; productions are still running in London and South Korea, and touring in North America.

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A South Korean production featured, in 2016, Jeong Sun-ah and Cha Ji-yeon.

Oct. 30, 2018

Another Milestone: 15 Years

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The 15th anniversary cast included Amanda Jane Cooper as Glinda and Jessica Vosk as Elphaba.

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In 2018, the show celebrated its 15th anniversary, a milestone achieved by few shows. And “Wicked” has continued to outpace its peers: It has since become the fourth-longest-running production in Broadway history, following “The Phantom of the Opera,” “Chicago” and the top-grossing show, “The Lion King.”

Sept. 14, 2021

‘Wicked’ Reopens After the Shutdown

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The show reopened with Ginna Claire Mason as Glinda.

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Broadway shows were closed from the spring of 2020 through the fall of 2021 because of the coronavirus pandemic. In August 2021, the touring production of “Wicked” restarted in Dallas — the first Broadway touring production to do so — and in September 2021 “Wicked” reopened on Broadway.

Dec. 7, 2022

Yes, We’re Making a Movie

The idea of adapting “Wicked” for the screen goes way back. In fact, it predates the stage musical. Universal Pictures had optioned the novel but couldn’t figure out how to turn it into a film, and agreed to let Schwartz, working with Holzman, develop it into a stage musical first. (Universal didn’t miss out; it is one of the lead producers of the stage musical, along with Marc Platt and David Stone.)

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Cynthia Erivo and Ariana Grande rehearsing “Popular” in September 2022.

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Once the stage production became a ginormous hit, the film adaptation was an inevitability, but still there were false starts, abandoned schedules and creative-team overhauls along the way. News coverage of a film adaptation began in 2010; at one point, the director Stephen Daldry was attached and a 2019 release was announced; in 2021 Jon M. Chu became the director, and the next year he said it would be split into two films.

Grande and Erivo had both become fans via the stage show. Grande saw it with her grandmother on Broadway in 2004 (and met Chenoweth backstage); Erivo saw the London production when she was a student.

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Feb. 11, 2024

Marketing Saturation

The “Wicked” films’ rollout began in earnest in early 2024, with a trailer that ran during the Super Bowl, and the actresses were ubiquitous throughout that year, including in promotional spots that aired during the Paris Summer Olympics. (NBC Universal, the parent company of Universal Pictures, has the American broadcasting right to the Games.)

The marketing budgets for most Hollywood films are vastly larger than those for Broadway shows. In this case, because there are two films — one released last year and one released last month — the marketing campaigns, as well as publicity and news coverage, was doubled. The films had an estimated marketing budget of at least $125 million each — or $250 million total — along with the numerous brand partnerships that also generated a ton of attention. By contrast, the Broadway show has an annual marketing budget of about $11 million.

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Nov. 22, 2024

‘Wicked: Part I’ U.S. Theatrical Release

The movies’ effect on the stage production was significant. In 2023, “Wicked” grossed $97.85 million on Broadway; in 2024 it was up nearly 15 percent, to $112.13 million, and this year it expects to be up another 13.4 percent, to $127.3 million.

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The show says the effect in London has also been sizable: It expects London “Wicked” grosses this year to be up 29.4 percent over last year, and last year the grosses were up 10.5 percent over the previous year. (​​The show also holds a record for the highest weekly grosses in West End history, set this year during the week that included New Year’s Day.)

“It’s amazing,” Schwartz said in an interview. “Before the movies came out, I wondered what the impact would be on the show. I don’t think any of us anticipated how strong it would be. You can never plan on this kind of thing, or even hope for it, but it’s really lovely.”

Dec. 25, 2024

$5 Million on Broadway

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Actors don harnesses and elaborate wings to portray the flying monkeys who become Elphaba’s allies.

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The Broadway production of “Wicked” grossed $5 million over Christmas week last year (just a month after the first film’s release) — it is the first and only Broadway show to gross that much in a single week. (It was also the first show to cross the $2 million mark and the $3 million mark.)

Nov. 21, 2025

‘Wicked: For Good’ U.S. Theatrical Release

What’s next? The second movie was released just before Thanksgiving, giving a second surge for “Wicked” in all its forms, and now the year looks to be ending strong for the stage show. The Broadway production grossed more than $3 million over Thanksgiving week (by comparison, it had generally been grossing $2.3 million to $2.5 million during Thanksgiving weeks that preceded the films’ release). Just around the corner: the Christmas and New Year’s stretch, always a good period for Broadway, and this year, even more so for “Wicked.”

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Broadway grosses reflect the most recent box office receipts as reported by the Broadway League. Grosses are not adjusted for inflation.

Images: Sara Krulwich/The New York Times and Universal Pictures.

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Videos: CBS; Wicked Musical Korea; Broadway.com; Theater Mania; Ariana Grande; Pink News; Out; FOX; NBC; Universal Pictures.

Produced by Leo Dominguez, Hollis Johnson, Rebecca Lieberman and Josephine Sedgwick. Additional reporting by Leo Dominguez and Jeremy Singer-Vine.

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Senators dig into FCC chairman’s role in Jimmy Kimmel controversy

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Senators dig into FCC chairman’s role in Jimmy Kimmel controversy

U.S. senators peppered Federal Communications Commission Chairman Brendan Carr with questions during a wide-ranging hearing exploring media censorship, the FCC’s oversight and Carr’s alleged intimidation tactics during the firestorm over ABC comedian Jimmy Kimmel’s comments earlier this fall.

Sen. Ted Cruz (R-Texas) called Wednesday’s hearing of the Senate Commerce, Science and Transportation Committee following the furor over ABC’s brief suspension of “Jimmy Kimmel Live!” amid social media backlash over Kimmel’s remarks in the wake of conservative activist Charlie Kirk’s killing.

Walt Disney Co. leaders yanked Kimmel off the air Sept. 17, hours after Carr suggested that Disney-owned ABC should punish the late-night comedian for his remarks — or face FCC scrutiny. Soon, two major TV station groups announced that they were pulling Kimmel’s show, although both reinstated the program several days after ABC resumed production.

Progressives were riled by the President Trump-appointed chairman’s seeming willingness to go after broadcasters in an alleged violation of their First Amendment rights. At the time, a few fellow Republicans, including Cruz, blasted Carr for suggesting to ABC: “We can do this the easy way or hard way.”

Cruz, in September, said that Carr’s comments belonged in the mob movie “Goodfellas.”

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On Wednesday, Carr said his comments about Kimmel were not intended as threats against Disney or the two ABC-affiliated station groups that preempted Kimmel’s show.

The chairman argued the FCC had statutory authority to make sure that TV stations acted in the public interest, although Carr did not clarify how one jumbled sentence in Kimmel’s Sept. 15 monologue violated the broadcasters’ obligation to serve its communities.

Cruz was conciliatory Wednesday, praising Carr’s work in his first year as FCC chairman. However, Democrats on the panel attempted to pivot much of the three-hour session into a public airing of the Trump administration’s desire to punish broadcasters whom the president doesn’t like — and Carr’s seeming willingness to go along.

Sen. Ted Cruz (R-Texas) called Wednesday’s Senate committee hearing.

(Associated Press)

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Carr was challenged by numerous Democrats who suggested he was demonstrating fealty to the president rather than running the FCC as an independent licensing body.

Despite the landmark Communications Act of 1934, which created the FCC, the agency isn’t exactly independent, Carr and fellow Republican Commissioner Olivia Trusty testified.

The two Republicans said because Trump has the power to hire and fire commissioners, the FCC was more akin to other agencies within the federal government.

“Then is President Trump your boss?” asked Sen. Andy Kim (D-N.J.). The senator then asked Carr whether he remembered his oath of office. Federal officials, including Carr, have sworn to protect the Constitution.

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“The American people are your boss,” Kim said. “Have you ever had a conversation with the president or senior administration officials about using the FCC to go after critics?”

Carr declined to answer.

Protesters outside the Jimmy Kimmel Theater in September 2025.

Protesters flocked to Hollywood to protest the preemption of “Jimmy Kimmel Live!” after ABC briefly pulled the late-night host off air indefinitely over comments he made about the fatal shooting of conservative activist Charlie Kirk.

(Genaro Molina / Los Angeles Times)

The lone Democrat on the FCC, Anna M. Gomez, was frequently at odds with her fellow commissioners, including during an exploration of whether she felt the FCC was doing Trump’s bidding in its approach to merger approvals.

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Trump separately continued his rant on media organizations he doesn’t like, writing in a Truth Social post that NBC News “should be ashamed of themselves in allowing garbage ‘interviews’” of his political rivals, in this case Sen. Raphael Warnock (D-Ga.).

Trump wrote that NBC and other broadcasters should pay “significant amounts of money for using the very valuable” public airwaves.

Earlier this year, FCC approval of the Larry Ellison family’s takeover of Paramount stalled for months until Paramount agreed to pay Trump $16 million to settle a lawsuit over his grievances with edits of a CBS “60 Minutes” pre-election interview with Kamala Harris.

“Without a doubt, the FCC is leveraging its authority over mergers and enforcement proceedings in order to influence content,” Gomez said.

Parts of the hearing devolved into partisan bickering over whether Democrats or Republicans had a worse track record of trampling on the 1st Amendment. Cruz and other Republicans referenced a 2018 letter, signed by three Democrats on the committee, which asked the FCC to investigate conservative TV station owner Sinclair Broadcast Group.

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“Suddenly Democrats have discovered the 1st Amendment,” Cruz said. “Maybe remember it when Democrats are in power. The 1st Amendment is not a one-way license for one team to abuse the power.

“We should respect the free speech of all Americans, regardless of party,” Cruz said.

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Commentary: Republicans don’t have a healthcare plan, just a plan to kill Obamacare

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Commentary: Republicans don’t have a healthcare plan, just a plan to kill Obamacare

For millions of Americans, Jan. 1 won’t be an occasion to celebrate the coming of the new year. It will be an occasion for dread.

The reason is the impending termination of crucial premium subsidies for Affordable Care Act health plans. Without a last-minute agreement between congressional Democrats and Republicans, the subsidy structure that has been in place since 2021 will revert to the original arrangement written into the act in 2010.

Millions of Americans dependent on the ACA will face potentially ruinous increases in coverage costs. Many will have to drop their coverage. That process will leave those with the most urgent and costly treatments in the ACA, and those who think they can get away with dropping insurance — or simply can’t afford it — on the outs. The result will be a sicker coverage cohort, which will raise prices for everybody.

I want to see the billions of dollars go to the people, not to the insurance companies and I want to see the people to go out and buy themselves great healthcare.

— An empty promise from President Trump

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The current stalemate is the offspring of the GOP’s 15-year campaign to undermine — really, to kill — Obamacare.

Republicans have dressed up their attack on the ACA with reams of empty rhetoric. They habitually call the ACA a “disaster,” without offering a cogent explanation of why.

Plainly, they see Obamacare as a nice, juicy partisan target, but they’re not reading the room. The ACA’s popularity has steadily increased since mid-2016; in KFF’s most recent tracking poll, taken in September, favorable opinion swamped unfavorable opinion 64% to 35%.

Americans have voted for the ACA with their feet. Since 2018, enrollment in Obamacare plans has more than doubled, from 11.4 million to 24.3 million this year, with a notable enrollment increase starting in 2021, when the premium subsidy structure was improved. That’s the change due to expire on Dec. 31 (Republicans, please note). The enrollment figure doesn’t include the 16.7 million Americans enrolled in Medicaid under ACA expansion rules — a provision still rejected by benighted political leaders in 10 red states.

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They blame the ACA for higher healthcare costs. A few things about this: Yes, healthcare costs have continued to rise since its enactment. But they’ve risen at a much slower rate than before. Out-of-pocket per capita healthcare spending rose at a rate of 3.4% a year from 2000 to 2018, often exceeding the general inflation rate, but by only 1.9% a year since then.

That increase isn’t driven by the ACA. It’s the result of several factors, including the general aging of the U.S. population and a sharp increase in pharmaceutical costs, due in part to the advent of high-priced specialty prescription drugs.

The GOP has amended its attack on the ACA in recent months, as the clamor to extend the premium subsidies has intensified. Republicans are now decrying the ACA as a haven for fraud — “a broken system fueled by fraud,” says House Speaker Mike Johnson (R-La.). Johnson drew his conclusion from a report by the Government Accountability Office published earlier this month.

Johnson may have been hoping that no one would actually go and read that report. I did so, only to find that it doesn’t say what he claims it did. The GAO tested ACA enrollment controls on the federal marketplace — did enrollees accurately estimate their income and submit accurate Social Security numbers? Its test involved submitting applications from 20 fictitious individuals, of whom 18 were approved.

Is this an adequate sample? The GAO itself says it isn’t. The results, it says, “cannot be generalized to the overall enrollment population.” In some test cases, the applications included false Social Security numbers, which are used to verify income claims. But the GAO says that in the real world, absence of verified Social Security numbers “does not necessarily represent overpayments.”

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Are these findings cause for concern? Sure, even though the GAO provided no findings about how widespread these flaws may be. In any case, there’s no evidence here that “the ACA marketplace is a magnet for fraud,” as Johnson called it, suggesting that thousands or millions of applicants are lined up for some healthcare gravy train. And it’s certainly no reason to kill the subsidies.

The other linchpin of the GOP attack on the Affordable Care Act is heavy breathing over how the ACA premium subsidies are paid directly to insurance carriers, rather than as cash to households. This idea trickles down from President Trump but has been embraced by Republicans in Congress. So it deserves a very close look.

Here’s Trump last week: “I want to see the billions of dollars go to the people, not to the insurance companies and I want to see the people to go out and buy themselves great healthcare. Much better healthcare at very little cost.” This has been an enduring promise from Trump, who never bothers to explain how the nirvana of great healthcare at little cost can be achieved.

Here’s Sen. Bill Cassidy (R-La.), a physician who cast the final vote to confirm Robert F. Kennedy Jr. as Health and Human Services Secretary, a vote that has left him humiliated over and over by Kennedy: “Republicans absolutely want to help the American people with the affordability of their out-of-pocket [spending]. We want to put money in their pocket to pay the out-of-pocket.”

Before delving deeper into this issue, a few words about the existing ACA premium subsidies.

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The original ACA subsidies capped premiums on a sliding scale ranging from 2.07% of income for those earning 138% of the federal poverty line to 9.83% of income for those at 400% of the poverty line. This year, 138% of the poverty level for a family of four is $44,367, and 400% is $128,600.

The ACA’s architects knew these subsidies were inadequate. Especially troubling was the sharp cutoff of any subsidies for families earning even a dime more than 400% of the poverty level. This became known as the “subsidy cliff.” But it was an artifact of political compromise; the expectation was that Congress would get around to fixing the cheeseparing subsidy schedule at a later date.

In the pandemic-driven American Rescue Plan Act of 2021, Congress refashioned the subsidies so families with incomes up to 150% of the poverty level ($56,475 for a family of four this year) could find decent Obamacare plans for free. For those above that level and up to 400%, the subsidies were significantly increased. That’s the change set to expire Dec. 31.

It’s true that eligibility for these subsidies is technically unlimited, but the conservative trope that they benefit “millionaires” is nonsense. As I reported earlier this year, the new structure means technically that someone earning $1 million a year would have to pay no more than $85,000 per person for an ACA plan.

Is this a handout? ACA expert Charles Gaba tested the claim by hunting for a benchmark Silver ACA plan, on which the subsidies are based, costing that much anywhere in the U.S. The highest-cost plans he found anywhere are in four counties of West Virginia, where a Silver plan for a 64-year-old couple tops out at $63,100 a year — in a state with the highest ACA premiums in the nation.

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Cassidy’s proposal is essentially to replace the existing subsidy enhancements with health savings accounts, which must be paired with high-deductible health plans, and to seed them with $1,000 a year per adult ages 18 to 49 and $1,500 for those 50 and up. Households with income up to 700% of the federal poverty level would be eligible — that’s about $225,000 for a family of four.

Let’s start with the plain arithmetic of this proposal. The accounts must be paired with a bronze-level ACA plan. Those plans cover only about 60% of average healthcare costs. Deductibles are high — at Covered California, the state’s ACA marketplace, the bronze plan deductible is $5,800 per person and $11,600 for a family. Out-of-pocket maximums are also high — $10,600 per individual and $21,200 for a family.

So right from the outset, the Cassidy proposal would leave families facing serious medical expenses out in the cold.

The HSA idea is part of a GOP argument that giving families cash to spend on healthcare gives them “skin in the game” — that by forking over dollars, they’ll be more sensitive to the cost of medical care and therefore seek out or negotiate lower prices.

Two of the argument’s leading academic promoters, Liran Einav of Stanford and Amy Finkelstein of MIT, wrote in a 2023 book lauding deductibles and co-pays that “patients must pay something for their care, otherwise they’ll rush to the doctor every time they sneeze.” More recently, as the facts have come in, they’ve said: “We take it back.”

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The truth is that there’s no evidence that higher financial obstacles to healthcare produce better outcomes. They do discourage unnecessary treatments, as a seminal Rand Corp. study found in 1981. But they also discourage necessary treatments.

The idea that deductibles and co-pays will prompt the average person to seek out low-cost providers is a fantasy. People typically seek out medical care in an atmosphere of urgency. They don’t take the time to compare prices as if they’re buying a car; they go to the doctor and follow his or her instructions, including prescribed procedures and diagnostic tests. (Sometimes they do price shop, but generally for treatments that can be deferred and are medically routine and elective — one study showing cost savings from price shopping focused on hip and knee replacements, for instance).

As for the claims of Trump and other Republicans that Americans, armed with cash in their pocket, can use it to negotiate medical care — who has the time, energy or bargaining skill to do that?

In any case, the HSA is mischaracterized as a healthcare provision. It’s not; it’s a tax break in disguise, useful for higher-income taxpayers who can afford to cover the high deductibles themselves while pocketing a tax deduction. It’s especially appealing for those who are in good health and expect to stay so — they proceed on the assumption that they probably won’t have a serious (and expensive) medical issue.

U.S. healthcare costs per capita have continued to rise since the enactment of the Affordable Care Act, but at a much lower rate than before.

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(JAMA)

The bottom line is that the Republican Party is out of healthcare ideas. They’ve had 15 years to conjure up a better program than the Affordable Care Act, and have nothing to show us except proposals that won’t work for the average family. They’re up against a wall of their own making, and are pretending that they have something better. They don’t, and you and I will be paying the price of their failure.

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