First (Failed) Affordable Care Act Replacement Healthcare Plan (From Republicans In The House Of Representatives) Projected To Cost More For Some Insured People, Allow Insurance Companies To Charge Different People Different Rates, Reduce Number Of Insured People Overall, Reduce Budget Deficit
The Congressional Budget Office released a report analyzing the impact of the Republican plan to replace the Affordable Care Act (also known as Obamacare).
The CBO report estimates “14 million Americans would drop or lose health insurance coverage by next year.”
The report also projects this number “to rise to 21 million uninsured in 2020 and then to 24 million in 2026 [above the amount uninsured before implementation of the original Affordable Care Act]. The drop in the number of insured would result in part because people would opt to go without coverage once the requirement that most Americans have coverage or pay a penalty is repealed, according to the report by the CBO and the Joint Committee on Taxation.”
“Premiums would tend to increase before 2020, rising up to 20% higher than under the ACA, in large part because of the demise of the penalty for not having coverage. Premiums would then go down: In 2026, average premiums for a single person in the individual market would be about 10% lower than under the health law now.”
The CBO report estimates “64-year olds making $26,500 would see premiums increase by an estimated 750 percent by 2026.”
The Affordable Care Act does not allow insurers to charge different rates for women, based on age, or those with preexisting conditions. “The GOP plan allows insurers to charge older people five times as much as younger adults, bringing the premiums for younger buyers down while they go up for older people“.
The CBO report notes that “[insurance] markets will stay stable regardless of whether the GOP bill becomes law“.
The CBO report also “estimates that the Republican plan would decrease government spending by $1.2 trillion over 10 years. But because the plan would eliminate taxes imposed by the ACA, the new bill would also reduce government revenue by $0.9 trillion. The net result: a $337 billion reduction in the deficit over a decade.”