10 ways the AHCA would im­pact cov­er­age and the fed­eral bud­get

Modern Healthcare - - NEWS - By Harris Meyer

The Con­gres­sional Bud­get Of­fice and Joint Com­mit­tee on Tax­a­tion last week is­sued sep­a­rate analy­ses of the Amer­i­can Health Care Act. Here are five key find­ings from each re­port. CBO (All pro­jec­tions are in com­par­i­son to cur­rent law):

1. Re­duce the fed­eral deficit a cu­mu­la­tive $119 bil­lion by 2026.

2. Re­sult in 14 mil­lion fewer peo­ple cov­ered in 2018, grow­ing to 23 mil­lion by 2026. The to­tal num­ber of unin­sured would hit 51 mil­lion by 2026.

3. Save $290 bil­lion over 10 years by re­plac­ing the Af­ford­able Care Act’s pre­mium and cost-shar­ing sub­si­dies with less gen­er­ous age-based pre­mium tax cred­its, re­duc­ing spend­ing from $665 bil­lion to $375 bil­lion.

4. In­crease Medi­care dis­pro­por­tion­ate-share pay­ments to hos­pi­tals by $43 bil­lion over 10 years due to a jump in unin­sured pa­tients.

5. Re­sult in 4 mil­lion more peo­ple in em­ployer-based health plans by 2026, mainly be­cause em­ploy­ers would see the in­di­vid­ual mar­ket as a less de­sir­able op­tion for their work­ers.

The Joint Com­mit­tee on Tax­a­tion found that the bill’s tax pro­vi­sions would slash fed­eral rev­enue by $662.6 bil­lion from 2017 through 2026. Here are the five largest ar­eas of rev­enue re­duc­tion:

1. $172.2 bil­lion from re­peal­ing the ACA’s 3.8% tax on wealthy peo­ple’s in­vest­ment in­come.

2. $144.7 bil­lion from re­peal­ing the an­nual fee on health in­sur­ance pre­mi­ums.

3. $125.7 bil­lion from low­er­ing the in­come per­cent­age thresh­old from 10% to 5.8% for de­duct­ing med­i­cal ex­penses.

4. $66 bil­lion from de­lay­ing un­til 2026 the so-called Cadil­lac tax on high-value em­ployer health plans. 5. $58.6 bil­lion from re­peal­ing the ACA’s ad­di­tional 0.9% Medi­care pay­roll tax on wealthy peo­ple.

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