Cutting off Obamacare payments would jack premiums up 20 percent: CBO

by Tom Howell Jr.
August 16, 2017

Cutting off contested Obamacare payments would greatly increase premiums and taxpayer spending on subsidies that chase those rates, budget scorekeepers said Tuesday in dour estimates of what will happen if President Trumpand congressional Republicans refuse to keep the money flowing.

The Congressional Budget Office said insurers would increase their rates for popular mid-level plans by an estimated 20 percent in 2018 and 25 percent in 2020 and subsequent years to make up for the loss “cost-sharing reductions” that reimburse them for picking up low-income customers’ costs.

As a result, federal deficits would increase by nearly $200 billion over the 10-year budget window — despite savings from axing the payments — largely because subsidies rise with the cost of mid-tier plans on the insurance exchanges set up under the 2010 Affordable Care Act, the analysts said in a report requested by House Democratic leaders.

The report will likely increase pressure on Republicans to maintain the payments, known as CSRs, so long as Obamacare is on the books.

19 Comments - what are your thoughts?

  • Clyde Gilbert says:

    Don’t pay it now and don’t pay it later, my taxes should not go for this travesty!

  • Nana Monster says:

    Nothing said about the fact he robbed from Freddie Mac and Fannie Mae to pay the premiums. These agencies do NOT have to report their incomes so it was easy to take monies from them.

  • K.A. says:

    This is nothing but extortion by the Democrat party, using the insurance companies, to force socialized medicine on US. If any regular citizen did this, we’d be put in prison under the RICO statues.

  • CCblogging says:

    Just repeal that piece of trash and let’s go back to where we were before the Deep State Democrats shoved it down our throats. Those Death Panels are real and they are written into Obamacare. Look what happen just recently in England when the Death Panels ruled against the parents trying to get their son medical help. That’s what Obamacare is! It’s the same social government controlled medicine folks. If Obamacare is not repealed, it will implode unless it is constantly refunded. Ever wonder why your taxes are so damn high?

  • roboteq says:

    It should not surprise anyone that Obamacare is not able to be fixed. It is a Socialist program that requires government intervention to operate which means there are always going to be additional costs involved. Any way you slice Obamacare, it comes down to a redistribution of wealth by an organization that is collecting additional operation costs.

  • mudguy1 says:

    When has the CBO been right? Why are they letting the Liberal CBO give them advise when they wrong all the time.

  • Leslie Woodhull says:

    BULLS#@$T!! F THE CBO!!! KEEPING CLOWNCARE CAR IS NOT AN OPTION!! ALL INSURANCE CARRIERS ARE BAILING!!! GIVE US BACK WHAT WE HAD BEFORE THE CLOWN EVER TOOK OFFICE IN 2008!!

  • itsfun says:

    Would cutting off payments mean that individuals would actually be responsible for their own healthcare instead of the taxpayers?

    1. Roy Fredrichsen says:

      Well, after all, The IRS is collecting all the O’Bummer Care premiums, but nobody knows what they are doing with it because premium costs are still rising even with government subsidies (taxpayer money) an the Insurance companies keep bailing out of the ACA inspite of the Democrats opposition to eliminate a useless program that benefits only the rich, and none of the Senators are on it.

  • Ramon1710 . says:

    The CBO’s accuracy with numbers has always been equivalent to hiring a class of first graders to do your yearly taxes.

    The real joke is the CBO claiming to be non-partisan. Competition lowers prices, it doesn’t increase them. But that doesn’t fit the communist objectives of the leftist CBO and the UN it seeks to serve.

  • Pete says:

    This is further proof that the CBO is a bunch of socialistic political hacks.
    The idea that the tax payers must help the insurance industry (a privately owned business enterprise) so they can help the poor is disguised redistribution of wealth.
    If the government needs to help the poor (which I am not again) then do it directly & don’t waste money paying someone else to do it for them.

    1. bobnstuff says:

      The poor aren’t being helped by this, they get medicaid, it’s the lower middle class. As far as helping the insurance industry why should they be different then the oil industry. We give EXXON MOBIL more money then the total subsidy for the ACA. Also since you don’t like redistribution of wealth I guess you are as against it going the other way like it has been for years were the rich just keep getting richer while everyone else losses ground.

      1. gvette says:

        Still hate capitalism I see Bob! You’ll notice we subsidize the RR, Public broadcasting, and a host of other things, Bob. Not to mention we still give financial aid to China, for which we owe billions!

        1. bobnstuff says:

          Show proof that we give financial aid to China. We also subsidize airports, harbors, and a number of other public institutions. You do understand that’s why we have a government. Having owned four businesses I believe you could say I’m a capitalist but you can’t solve every problem using pure capitalism. Our founding fathers understood this.

          1. gvette says:

            Good Grief, Bob. According to you, being the smartest gut on the planet, should know we give aid to 96% of the countrys in the world. China being one of them.
            http://www.washingtontimes.com/news/2015/feb/12/us-sends-china-millions-in-foreign-aid-despite-13-/

          2. bobnstuff says:

            https://www.usaid.gov/china

            Here are the facts. Congress believe helping Tibetans in important among other things. Remember it’s the Republicans that control the budget.

            USAID’s activities relating to China fall into three categories and are implemented by the Agency’s Thailand-based Regional Development
            Mission for Asia (RDMA).

            “First, USAID assists Tibetan communities in China by promoting more prosperous lives through employment creation; improved management of
            natural resource-based livelihoods, such as yak herding; and preservation of their cultural heritage.

            Second, through regional programs, we help address key cross-border challenges of global consequence. Those involving China include
            preventing the spread of HIV/AIDS and emerging infectious diseases, such as drug-resistant tuberculosis, malaria and influenza viruses of animal
            origin; combating wildlife trafficking; and through collaboration with the Asian Development Bank and other donors, encouraging infrastructure
            investment that minimizes negative impacts to the Lower Mekong countries.

            Third, at the direction of Congress, USAID provides assistance in rule of law and reducing greenhouse gas emissions.”

          3. gvette says:

            What the fuck are you babbling about? You run off at the keyboard, and look more like an asshole every day, Bob!

      2. Pete says:

        Still puling your figures from where the sun does not shine. The “lower middle class” could manage the premiums prior to the ACA & now they need special financial help to get even less coverage.
        The ACA is a dead horse & the longer it remains in force the more people it harms. It is part of the reason the democrat party lost over a thousand legislative seats nationwide in the last 7 years of the Obama administration.
        As of today the Republicans control 69 of the 99 state legislatures and 2/3 of the Governors offices.

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