Today’s Managing Health Care Costs Number is 13%
When the Congressional Budget Office released its devastating report on the American Health Care Act, some supporters tried to turn our attention to the projection that the costs of insurance plans would decrease in the out years –but about 10% (after going up over the next two years.)
But that’s like saying a Yugo is equivalent to a Corolla. The plans the CBO projects to be available in 2020 and beyond have lower actuarial values than the plans currently available through the Affordable Care Act - which means even higher deductibles and other out of pocket payments. AND the CBO projections include many more young enrollees –and fewer older (more expensive) enrollees.
Brookings has shown how the value of the plans available under the AHCA will in fact be substantially lower – so the fact that the plans cost a little less is not relevant. When adjusted for enrollee demographics and plan generosity, the AHCA plans will be 13% more expensive!
Yugos were sold in the US in 1985, and were labeled by Car Talk as “the worst car of the millennium.”
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