Health Care Reform Round-Up: CBO Finds Some Insurance Savings, New Amendments Proposed
side note: The section most appropriate for this blog’s readership comes after the jump; dealing with the Health Insurance Industry Antitrust Enforcement Act of 2009.
The Congressional Budget Office released an analysis undertaken with the staff of the Joint Committee on Taxation (JCT) on how the Patient Protection and Affordable Care Act, H.R. 3590, would affect premiums paid for health insurance in various markets.
The nongroup (individual) market would have the most significant effect, growing in size under the legislation but still only 17 percent of the overall insurance market by 2016. Under legislative change, the cost for individual policies would be about 10 percent to 13 percent higher in 2016 than the same coverage in 2016 under current law. However, more than half of the enrollees in these policies would receive federal government subsidies (for those individuals and families with income between 133 percent and 400 percent of the federal poverty level (FPL)). When those subsidies are taken into account, the enrollees’ cost for the subsidized policies would be around 56 percent to 59 percent lower than the same nongroup premiums charged under current law.