Washington, D.C. — A new report by the Center for American Progress and independent experts debunks the House majority’s claims of lower long-term costs under the health care bill backed by President Donald Trump. The study, which uses the Congressional Budget Office’s, or CBO’s, projections of premiums, reveals staggering costs and financial risks to Americans in every state. The House bill would hit Alaska the hardest, followed by North Carolina, Oklahoma, Arizona, Wyoming, Nebraska, West Virginia, Tennessee, Alabama, and Montana.
The report estimates of cost increases for enrollees in each state 2020 and 2026. CAP’s breakdown shows that the House bill would increase costs for the average enrollee by $3,174 in 2020, when the new program would go into effect. The impact would be particularly severe for older individuals age 55 to 64, whose costs would increase by $8,329. Individuals with income below 250 percent of poverty would see their costs increase by $4,815.
“The House bill is far worse for Americans than we thought. The proposed bill will skyrocket overall costs for families and put them at great financial risk—in some cases, over $10,000 a year. In addition to 24 million people projected to lose coverage, it will especially strain the pocketbooks of those who already face challenges to accessing affordable health care, like those with low incomes and those in rural areas,” said Topher Spiro, Vice President for Health Policy at the Center for American Progress.
CAP’s analysis shows rapid cost increases in Alaska in particular, revealing the shortcomings of Trumpcare in states with unique needs. Alaska has the highest premiums in the country, but the bill’s tax credits would not adjust for local pricing. Consider a 27-year-old in Alaska with income of $25,000. This person receives a tax credit of $7,884 under the Affordable Care Act, or ACA, but would receive only $2,000 under the House bill.
As a result, in 2020, the House bill would increase costs in Alaska by $14,072 for individuals and by $32,322 for families. By 2026, these estimates would skyrocket to $19,646 for individuals and $45,472 for families.
The cost increases would skyrocket over time because the bill’s tax credits would not keep pace with costs.
Click here to read “The Impact of the House ACA Repeal Bill on Enrollees’ Costs: Estimates by States and Over Time” by David Cutler, Topher Spiro, and Emily Gee
For more information on this topic or to speak with an expert, contact Devon Kearns at [email protected] or 860.977.1928.