Politico: Ways and Means backs lifting Obamacare fees on insurers, drug makers

The Ways and Means Committee endorsed language rolling back Obamacare fees on health insurers and certain pharmaceutical manufacturers, moving a step closer to advancing the House GOP's repeal bill.

The panel voted along party lines, 24-16, in favor of repealing taxes on brand-name prescription drug makers and on health plans, with Republicans touting the move as another step toward lifting the financial burdens created by the 2010 health law. The provision is the third of five tax-related elements set to be considered during the committee's marathon markup, which is running into the early hours of Thursday.

The health insurance industry has long railed against the so-called HIT tax, blaming it for contributing to higher premiums.

Ways and Means Democrats portrayed the repeal vote as a rejection of President Donald Trump's pledge to bring down drug costs, warning that it would return $25 billion to an industry under heavy scrutiny for its pricing practices.

"He has correctly described what he called ‘astronomical' drug costs," Rep. Lloyd Doggett (D-Texas) said of Trump's call to crack down on pharmaceutical companies. "The bill doesn't do anything to bring the price way down. In fact, it's going to have the opposite effect."

But Republicans including Ways and Means Chairman Kevin Brady (R-Texas) brushed off the criticism, accusing Democrats of scapegoating the pharmaceutical industry for Obamacare's failings.

"I recognize it's kind of easy to kick the pharmaceutical companies around," Brady said. "But in the end, [Obamacare] ended up kicking seniors and small business people and patients in a very bad way."