The CBO says the Bipartisan Health Care Stabilization Act of 2017 would cut the deficit by $3.8 billion over ten years and would not substantially change uninsured rates.
In other words, this bipartisan fix would cut spending without decreasing the number of Americans covered. It does this while at the same time ensuring out-of-pocket cost assistance for those with incomes between 100% – 250% of the poverty level.
This is great news for those who want to see the insurance markets stabilized and deficits cut, but don’t want people to lose health insurance or cost assistance.
READ THE CBO REPORT: Bipartisan Health Care Stabilization Act of 2017.
BACKGROUND ON THE BILL: The Bipartisan Health Care Stabilization Act of 2017 was introduced last week by Republican Senator Lamar Alexander and Democratic Senator Patty Murray. It would restore cost-sharing reduction (CSR) subsidy payments to private insurers (who, in return, help lower-income people buy insurance by offering lower out-of-pocket costs on plans). This fix was brought to the table after President Donald Trump announced he would no longer make these payments to insurers. Learn more about the ongoing cost-sharing reduction debate here.
“On net, CBO and the staff of the Joint Committee on Taxation (JCT) estimate that implementing the legislation would reduce the deficit by $3.8 billion over the 2018-2027 period relative to CBO’s baseline. The agencies estimate that the legislation would not substantially change the number of people with health insurance coverage, on net, compared with that baseline projection. Enacting the legislation would affect direct spending and revenues; therefore, pay-as-you-go procedures apply.
CBO and JCT estimate that enacting the legislation would not increase net direct spending or on-budget deficits in any of the four consecutive 10-year periods beginning in 2028.”
- Bipartisan Health Care Stabilization Act of 2017. CBO.
- CBO report: Bipartisan Obamacare fix would reduce federal deficit by $3.8B over the next decade. Reuters article, published on AOL.