CBO: GOP House health reform plan costs less, covers fewer Americans

A plan House Republicans plan offered as an alternative reform measure would cost hundreds of millions less than one offered by Democrats, but also leave nearly 52 million Americans uninsured, government analysts say.

The Republican’s substitute amendment to the Affordable Health Care for America Act (HR 3962), would cost $60 billion through 2019, according to an analysis performed by the non-partisan Congressional Budget Office, much less than the Democrats’ proposal which the CBO estimates at just over $1 trillion.

John Boehner

John Boehner

However, while the Democrats’ plan would cover 36 million additional Americans, the Republican plan would cover 3 million uninsured Americans, leaving 52 million without coverage, according to the CBO.

“The share of legal nonelderly residents with insurance coverage in 2019 would be about 83%, roughly in line with the current share,” CBO Director Douglas Elmendorf wrote in a letter Nov. 4 to House Republican Leader John Boehner (R-Ohio), who authored the bill.

The CBO and staff of the Joint Committee on Taxation found that the amendment would result in a net reduction in federal budget deficits of $68 billion over the next decade, reflecting a projected net cost of $8 billion over 10 years for the provisions directly related to insurance coverage. The Democrats’ plan would cut the deficit by $104 bilion over the same time period.

In terms of health insurance premiums, the CBO found that in the small-group market, representing 15% of total private premiums, the Republican amendment would lower average insurance premiums in 2016 by an estimated 7% to 10%, compared with current levels. For individually purchased insurance (5% of total private premiums), per person costs would decrease 5% to 8% by 2016.

For the large-group market (nearly 80% of total private premiums), the drop would be zero to 3%, according to the analysis.

The CBO said its estimates take into consideration factors including that they are very preliminary and “are subject to an unusually high degree of uncertainty, even compared with the significant uncertainty attending estimates of the effects of proposals making broad changes in the nation’s health care and health insurance systems.”

Boehner plans on introducing the bill on the House floor when the Democrats’ bill (HR 3962) comes before the entire body, which could be as early as Nov. 6. Any House bill that wins approval would have to be reconciled with the Senate’s bill, which has not been finalized yet and is expected to contain some different provisions.

Follow IFAwebnews: 
Important links and updates throughout the day via Twitter Join IFAwebnews’ Insurance News group on LinkedIn.com Become a fan of IFAwebnewss Insurance News on Facebook Feeds for all the ourinsurance news or just the lines you need. Insurance news delivered to your inbox
© 2009 New Horizon Group, Inc. :: Insurance & Financial Advisor | IFAwebnews.com :: NS 96 queries. 3.821 seconds.
Entries RSS Comments RSS