CBO Provides A Roadmap For Improving AHCA

The future of the American Health Care Act (AHCA), the GOP-drafted plan to repeal and replace the Affordable Care Act (ACA), is unclear after the bill was pulled before the House of Representatives could vote on it. But the debate over the ACA and proposals to replace several of its key provisions is unlikely to remain off the national agenda permanently. The individual insurance market under the ACA’s rules is performing poorly in several states around the country, and the situation is unlikely to improve on its own without policy intervention. It remains valuable, therefore, to understand what would happen if AHCA in fact became law, and what could be done to improve it or a new reform proposal. The best place to start is with the cost estimate of the plan produced by the Congressional Budget Office (CBO). Trump administration officials, some members of Congress, and assorted commentators have criticized CBO for this estimate, arguing that it is a fundamentally inaccurate assessment of what would occur if AHCA passed. This criticism is misplaced. While some of CBO’s assumptions are indeed questionable, there is little doubt that the agency’s bottom line assessment is basically correct: The bill, as currently structured, would trigger a rise in premiums in the short-run, a sharp increase in the number of people without insurance over the next two years, and then also a steady increase in the number of uninsured Americans over the following eight years. Inst...
Source: Health Affairs Blog - Category: Health Management Authors: Tags: Featured Following the ACA Insurance and Coverage Medicaid and CHIP ACA repeal and replace AHCA CBO Source Type: blogs

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