The CBO ’s Updated Estimate Of The AHCA

On May 24, the Congressional Budget Office (CBO) released its assessment of the American Health Care Act (AHCA). The estimate reflects the impact of two amendments that were key to the US House of Representatives’ passage of the bill three weeks earlier. The MacArthur amendment allows states to apply for waivers from key Affordable Care Act (ACA) regulatory requirements. The Upton amendment creates an $8 billion fund to help make insurance more affordable to high-cost individuals in states that change ACA insurance rules. Much of the discussion in the updated cost estimate explains the CBO’s rationale for determining how many people could be affected by the waivers and their potential impact on premiums, insurance enrollment, and the federal budget. The MacArthur amendment raised concerns that the AHCA would undermine protections for people with preexisting conditions. States would be able to modify the ACA’s essential benefits requirement and permit insurers to charge premiums according to a person’s health status. Eliminating benefits such as maternity coverage or mental health benefits and setting premiums on the basis of one’s health status would lower costs for healthier people but increase costs for those needing more health services. Although the MacArthur amendment represents a major policy shift from earlier versions of the AHCA, it did not alter the CBO’s basic view of the legislation. The current analysis is consistent with CBO estimates from March 13 a...
Source: Health Affairs Blog - Category: Health Management Authors: Tags: Costs and Spending Following the ACA Insurance and Coverage Medicaid and CHIP American Health Care Act Congressional Budget Office Source Type: blogs