BREAKING: The New CBO Score by the Numbers
The new CBO report for the House-approved healthcare bill, the American Health Care Act (AHCA) was just released and there is a lot to unpack. Here is what you need to know about the CBO report.
- The AHCA would reduce the federal deficit between 2017-2026 period by $119 billion, which is $32 less than the original bill. This is a $1.111 trillion reduction in direct spending and $992 reduction in revenues, for a total net reduction of $119 billion.
- Total reductions include:
- $834 billion in federal spending for Medicaid
- $665 billion saved from eliminating exchange subsidies in 2020
- $23 billion saved from shifting populations in employment-based health insurance coverage
- $6 billion from repealing a tax credit for certain small employers who provide health insurance to their employees
- In 2018, 14 million more people would be uninsured under the AHCA than the current law.This figure will reach 19 million by 2020 and 23 million by 2026.
- Ultimately, by 2026, 51 million people under the age of 65 would not have coverage under the AHCA, compared to 28 million at the same time under Obamacare.
- Of the 51 million uninsureds, millions of them would use tax credits to purchase coverage that would not cover major medical.
- One-sixth of Americans, approximately 54 million people, would be in a state where the individual markets would be unstable by 2020.
- Community-rated premiums would rise over, and people with preexisting or newly acquired medical conditions would be unable to purchase comprehensive health insurance at premiums comparable to those under current law, if they could purchase it at all—despite the additional funding that would be available under H.R. 1628 to help reduce premiums.
- Premiums would increase in the individual market by an average of 20 percent in 2018 and an additional 5 percent in 2019.
- In 2020, average premiums would depend in part on which states waive which provisions, and on what share of the funding available from the Patient and State Stability Fund was applied to premium reduction.
- Between 2018 and 2026, the federal government would make $138 billion available to states to use for a variety of purposes such as reducing individual premiums.
- Beginning on January 1, 2018, $15 billion would be made available to implement a program to provide payments to health insurers for claims for eligible individuals, as defined by the Secretary of Health and Human Services. The CBO expects these funds to go to insurers to cover their risk of high-cost enrollees and that all of these funds will be used.
- An additional $8 billion would go to states to help individuals whose premiums increase as a result of their state waived the community-rating requirement. The CBO estimates that $6 billion of the funds will be used by 2026.
Don’t make the same mistake as the House of Representatives, have all of the information before you act. Signup for the Certified Healthcare Reform Specialist designation and have access to all of the information you need.