You are here:HomeIssuesHealth Care Reform2017CBO: Alexander-Murray Bill Saves $3.8 Billion

CBO: Alexander-Murray Bill Saves $3.8 Billion

Implementing the Affordable Care Act stabilization plan proposed by Sens. Lamar Alexander (R-Tenn.) and Patty Murray (D-Wash.) would reduce the U.S. deficit by $3.8 billion between fiscal 2018 and 2027, according to a Congressional Budget Office and Joint Committee on Taxation estimate...
October 31, 2017

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Implementing the Affordable Care Act (ACA) stabilization plan proposed by Sens. Lamar Alexander (R-Tenn.) and Patty Murray (D-Wash.) would reduce the U.S. deficit by $3.8 billion between fiscal 2018 and 2027, according to a Congressional Budget Office (CBO) and Joint Committee on Taxation estimate.

The ACA’s cost-sharing subsidies would be funded for about two years, and the process for granting state waivers would be eased under legislation negotiated by Alexander and Murray. The proposal, called “The Bipartisan Health Care Stabilization Act,” was unveiled on October 19 with 22 other Republicans and Democrats.

The bill would provide mandatory funding for the ACA’s cost-sharing reduction (CSR) payments from the date of the bill’s enactment through plan year 2019. CSR payments reimburse insurers for reducing out-of-pocket costs for low-income enrollees with income that is 100 percent to 250 percent of the federal poverty level (FPL) and who purchase silver-level plans on an exchange. The Trump administration announced Oct. 12 that it would end the payments, which it had been providing monthly.

Minority Leader Charles Schumer (D-N.Y.) said the Alexander-Murray deal has support from 48 Senate Democrats and 12 Republicans.

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