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I Can't Hear With All the Arguing. What's the CBO Say About the American Health Care Act?

It’s really hard to hear through the arguing what the Congressional Budget Office (CBO) thinks the outcome of the American Health Care Act will be. So we decided to break it down for you.

 

9 Main Points

Most Impacted CBO Predictions
1. Federal Budget Overall Cost Savings of $337 Billion
2. Health Insurance Dropouts Roughly 25 Million Individuals will go from being insured to uninsured
3. Individuals Who Make  greater than $200k/Year or Couples Who Make greater than $250k/Year Taxes are Reduced
4. High-Deductible Health Plan - Expanded Use of Health Savings Accounts (HSA) You Can Now Buy Over-The-Counter Meds With Your HSA; Spouses Can Also Contribute More to Your HSA Above 55 Years old
5. Private Health Insurance Market Will eventually stabilize (Meaning your Health Insurance Premiums Will Stop Going Up)
6. Medicaid Expansion Will Eventually Disappear
7. In Your 20s Pay Much Less for Your Monthly Insurance Premiums
8. In Your 50s to 64 Years Old Pay Much More for Your Monthly Insurance Premiums
9. Medicaid Less Money For Individuals

 

How Your Health Insurance Premiums Will Change

Who is Impacted Immediate Changes Long-Term Changes
Any Private Health Insurance* A 1:5 ratio of how much a 21-year old pays compared to a 64-year old None
Individuals Who Buy Insurance Outside of An Employer 15-20% increase in monthly premiums if 25 million people drop out of the insurance pool Pay 10% less than what you pay now**

*Self-funded health insurance plans from employers are not impacted by the ACA or the AHCA

**This is a result of insurance plans being allowed to cover a lower percentage of medical services, federal money given to health insurance companies to help cover sicker patients, and younger enrollees coming back into the market because plans are cheaper for them.

 

1. Year 2017 shows an average cost for the cheapest Bronze plan sold on the Marketplace without considering geographic region

2. Year 2019 reflects the immediate changes of a 20% increase and a 1:5 ratio between a 21-year old and a 64-year old

3. Year 2026 takes into account additional changes that will end up lowering the cost of plans by 10% less than their original cost in 2017 (the 1:5 ratio remains)

4. If you make less than $75,000 / year, you will receive this amount of tax credits to offset every month of your health insurance premium

 

Change in Health Insurance Status

The CBO Predicts 25 million people will drop out. We show you who that is.