The CBO Scores the Republican Obamacare Replacement Plan
By Jake Smith
The Congressional Budget Office released their score of the GOP replacement for the Affordable Care Act – also known as Obamacare – the Republican placement is called the American Health Care Act.
The CBO projects the AHCA will reduce the federal deficits by $337 billion over the 2017-2026 period. The CBO writes “the largest savings would come from reductions in outlays for Medicaid and from the elimination of the Affordable Care Act’s (ACA’s) subsidies for nongroup health insurance.”
The Republican replacement would increase the number of uninsured people by 14 million by 2018 and 24 million by 2026 – “an estimated 52 million people would be uninsured, compared with 28 million who would lack insurance that year under current law” – according to the new report.
Under the Republican’s American Health Care Act, by 2026 “premiums in the nongroup market would be 20 percent to 25 percent lower for a 21-year-old and 8 percent to 10 percent lower for a 40-year-old – but 20 percent to 25 percent higher for a 64-year old.”
The average premiums for single policyholders would also increase by 15 percent to 20 percent due to the elimination of the individual mandate penalties.
Additionally, the CBO estimates an 18 percent increase in premiums under the new GOP healthcare bill.
The Congressional Budget Office’s new score projects a reduction in the deficit, but this new score will be tough to sell to conservative Republicans and Democrats because of the increase in uninsured and rising premiums.
(Video above from Bret Baier's interview with House Speaker Paul Ryan following release of CBO report)