The Congressional Budget Office (CBO) is charged with analyzing federal government spending. A new report on the Affordable Care Act shows it’s going to cost the taxpayers less than originally projected.
The drop in the amount of premium subsidies to be paid on in the next 10-years is going to be $142 billion less than expected.
An ecstatic White House Press Secretary Josh Earnest said it proves ObamaCare is working. He calls it the latest in a “long line of data points that indicate the Affordable Care Act is contributing in a very positive way to holding down the growth of healthcare costs in the country.”
The CBO said the drop is from a moderate change in premium pricing though insurance costs are expected to continue rise. But that rise will be more slowly than originally expected. The CBO says this is the fourth consecutive year that spending has kept pace with the growth of the overall economy.
Others — like the New York Times — disagree with the White House and its claims ObamaCare is working. Credit is given to insurance companies who have introduced products that have higher deductibles and co-pays and that limit the number of doctors a customer can use.
More efficient care may also be a reason for the drop.
Here’s a proposed change and one that may add to the number of young people signing up for the Affordable Care Act, and it could become a contributer to the slower growth of premium costs.
It’s the so-called copper plan.
Critics don’t like the idea but Avalere Health did an analysis and say it’s not only feasible, but it’s a good way to further reduce the cost of ObamaCare to the taxpayer. Its estimate is a drop of $5.8 billion over the next 10-years if a copper plan is introduced.
“Introducing a new tier in 2016 may cause some individuals who have already enrolled in a marketplace plan to re-evaluate their prior choice, while also attracting other individuals who are expected to enroll for the first time in a marketplace plan that year,” Avalere’s report noted.
The industry likes the idea since the copper plan covers just 50% of the cost of coverage. That compares to the 60% of the current lowest level plan, the bronze plan.
Source links — two reports from Insurance Business America: Report 1 and Report 2