The New Media Journal | CBO: House GOP Healthcare Plan Reduces Costs, Lowers Deficit

The New Media Journal | CBO: House GOP Healthcare Plan Reduces Costs, Lowers Deficit: "The New Media Journal/Office of US Rep. Thaddeus McCotter
Last night, the nonpartisan Congressional Budget Office (CBO) released its score of the House Republican health care plan, reporting that it will reduce healthcare premiums by up to 10 percent and lower federal budget deficits by $68 billion over the next ten years.

In a letter sent to sent by the CBO to House Minority Leader John Boehner (R-OH), the CBO said:

'The amendment includes a number of provisions intended to increase the availability and improve the affordability of private health insurance.

'According to CBO and JCT’s (Joint Committee on Taxation) assessment, enacting the amendment would result in a net reduction in federal budget deficits of $68 billion over the 2010–2019 period. That estimate reflects a projected net cost of $8 billion over 10 years for the provisions directly related to insurance coverage; that net cost reflects a gross cost of $61 billion that is partly offset by about $52 billion in additional revenues associated with the coverage provisions. Over the same period, the other provisions of the amendment would reduce direct spending by $49 billion and increase tax revenues by $27 billion.'

US Representative Thaddeus McCotter said, “In hearing and heeding the American people, House Republicans have proposed sensible, affordable and helpful reforms to advance patient-centered wellness that will empower working families to reduce the costs, increase the quality and maximize the choices regarding their health care.'

The CBO's letter estimated that the GOP health care plan would reduce average private health insurance premiums per enrollee in the United States relative to what they would be under current law. Specifically:

▪ For the small group market (generally businesses with 2 to 50 employees), the GOP plan would reduce premiums in 2016 for example by seven to 10 percent.

▪ For the individual market, the GOP plan would reduce premiums in 2016 by five to eight percent."