CBO: Senate Health Care Bill Provides Lower Premiums and Saves Billions in Reduced Taxes
WASHINGTON D.C. – The Congressional Budget Office (CBO) today released its preliminary analysis of the draft Senate health care proposal, the Better Care Reconciliation Act, stating that the draft bill would lower premiums by 30 percent when compared with current law, while also lowering taxes for hardworking families and providing more than $331 billion in on-budget deficit reduction.
In a previous analysis, CBO found that repeal of the Obamacare law would boost the economy by encouraging more people to enter the workforce, which would in turn raise economic output. CBO states “Repeal of the ACA would raise economic output, mainly by boosting the supply of labor.” The resulting increase in Gross Domestic Product would raise revenues and further decrease federal deficits.
The CBO analysis specifically finds that the Senate health care bill:
Lowers premiums by 30% in 2020 than under current law.
Provides more than $331 billion in on-budget deficit reduction savings.
Reduces revenues by $700 billion.
Continues coverage for people with preexisting conditions, allows dependents to stay on their parents health policies until age 26, and does not make any changes to annual lifetime coverage limits.
Does not expressly modify the list of ACA provisions a state can waive under a 1332 waiver - including preexisitng conditions.
Maintains stable health insurance markets by providing optional state waivers designed to let governors and states address barriers to health care insurance coverage for their citizens, along with immediate resources designed to help health plans stay in communities they are currently planning to leave, and long-term funding to help states transition to more stable markets.
Targets health care credits more effectively to ensure they are used by those who truly need them.
Safeguards Medicaid by targeting spending to those most in need, while including new protections for the most vulnerable. The bill also provides governors with more flexibility in how their Medicaid system provides health care to those who are eligible.
Protects the most vulnerable, including ensuring that children with medically complex disabilities continue to be covered.
Ensures Medicaid funding for inpatient psychiatric services to nonelderly adults, helping to address the substance abuse and mental health crisis, and provide additional state grants that will be available to respond to the nation’s substance abuse public health crisis and urgent mental health needs.
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