Yesterday the Congressional Budget Office (CBO) released a new score of the revised version of the American Health Care Act, the Republican plan to replace Obamacare, that shows if it gets approved in the Senate and is signed by President Trump into law, an estimated 14 million more Americans would be uninsured in 2018 and that figure would jump to 23 million by 2026.
The number of uninsured over the age of 65 would nearly double by 2026 with an estimated 51 million, compared with 28 million under the current law.
The revised version of the American Health Care Act was just passed in the Republican controlled House of Representatives on May 4th by a slim majority 217 to 213 before it had received a score or analysis from the Congressional Budget Office (CBO).
The new CBO score that was released yesterday indicates that enacting the latest revised version of the American Health Care Act would lower the cumulative federal deficit over the 2017-2026 period by $119 billion, which is $ 32 billion less than the net savings from the last version of the American Health Care Act, released on March 23nd that showed it would lower federal deficits by $150 billion over the same period.
The revised health care act would lower direct spending by $1,111 billion and reduce revenues by $992 billion, resulting in a net reduction of $119 billion in the deficit over that period.
The largest savings would come from a reductions in outlays from Medicaid which decreases by -834 billion over the 2017-2026 period alongside other savings from the replacement of the Affordable Care Act’s (ACA’s) subsidies for nongroup health insurance with new tax credits for nongroup health insurance.
Measuring the impact of monthly insurance premiums (before any tax credits were applied) shows that revised version of the American Health Care Act would tend to increase premium costs until 2020 by an average of about 20 percent in 2018 and 5 percent in 2019.
However, beginning in 2020, “average premiums would depend in part on any waivers granted to states and on how those waivers were implemented and in part on what share of the funding available from the Patient and State Stability Fund was applied to premium reduction.”
Written and Edited By: