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CBO: Bill to Shore Up ACA Reduces Premiums

Preliminary estimates from the Congressional Budget Office suggest that an updated bill to strengthen Affordable Care Act markets would reduce premiums by 10 percent next year and by 20 percent in 2020 and 2021...
March 20, 2018

Preliminary estimates from the Congressional Budget Office suggest that an updated bill to strengthen Affordable Care Act (ACA) markets would reduce premiums by 10 percent next year and by 20 percent in 2020 and 2021. Several recent changes have been made to legislation introduced last year by Sens. Lamar Alexander (R-Tenn.) and Patty Murray (D-Wash.), including the addition of a requirement that funds not be used for plans that cover abortions, something House Republicans sought.

The measure would allocate $30 billion for three years of funding for reinsurance and invisible high-risk programs — intended to help insurers cover the costs of particularly sick and costly patients to bring down premiums for everyone else — and three years of key ACA payments called cost sharing reduction (CSRs) subsidies.

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