Congressional Budget Office (CBO) completes review of The American Health Care Act (AHCA), saying there will be cost savings but millions more will be left uninsured
CBO and the Joint Committee on Taxation (JCT) which is a nonpartisan committee of Congress established in 1926 released their findings after reviewing the AHCA. CBO and JCT estimate the AHCA will reduce federal deficits by $337 billion within the next decade while increasing uninsured levels by 24 million.
The estimated projections are based on Medicaid, non-group market, employment based market and various other changes. It’s projected reductions in coverage will result from folks opting out of insurance due to removal of the penalty requirement, while others will opt out due to higher premiums.
CBO and JCT explain key to insurance market stability will be subsidies for insurance purchase, grants to states from the Patient and State Stability Fund, which will reduce costs to insurers of people with existing and preexisting conditions. People with existing conditions are usually older and sicker and can expect premium increases from age-rating rule changes.
According to the president “This is a great day for America, a great day, what a great day it really is; it’s so unbelievable, unbelievable. I’m delivering on a promise to the American people. I’m putting America first while giving my constituents what they want and eliminating that terrible Obamacare legacy, it’s really terrible, terrible, I mean really bad”. More can be found at https://www.cbo.gov/publication/52486
Tags: ACA, Affordable Care Act, AHCA, American Health Care Act, Healthcare, Obamacare