CBO Sees Slow Growth For Exchanges; Administration Promotes Agents And Brokers In Marketplaces

On September 14, 2017, the Congressional Budget Office issued its annual report on Federal Subsidies for Health Insurance Coverage for People Under Age 65: 2017 to 2027. The CBO and Joint Committee on Taxation (JCT) estimate that in 2017, the federal subsidies, taxes, and penalties associated with health insurance coverage for people under age 65 will result in a net federal subsidy of $705 billion, about 3.7 percent of the gross domestic product (GDP). This amount is projected to rise to $1.2 trillion, or 4.1 percent of GDP by 2027.  About 244 million noninstitutionalized civilians under age 65 have health insurance. Of these, about 156 million have employer coverage, 63 million Medicaid or CHIP, 17 million nongroup market coverage (with 8 million subsidized and 2 million unsubsidized through the exchanges), and 8 million Medicare. A total of 28 million are uninsured.   Federal subsidies for people under age 65 in 2017 amounted to $287 billion for employment-related coverage, $296 billion for Medicaid, $89 billion for Medicare, and $45 billion for Affordable Care Act premium tax credits, cost-sharing reduction payments, and Basic Health Plan subsidies. The CBO projects that the individual mandate penalty will only yield $3 billion in revenue for 2017 because a “substantial majority” of the uninsured are not subject to it.  The CBO expects the nongroup market to be stable for 2018. It expects premiums to rise by about 15 percent for 2018 because of sho...
Source: Health Affairs Blog - Category: Health Management Authors: Tags: Following the ACA Insurance and Coverage agents and brokers navigators and assisters Source Type: blogs