This week, the Congressional Budget Office released its cost estimate of the House Republicans’ American Health Care Act. CBO concluded that the proposal would reduce deficits by $337 billion over the next decade, but would result in an increase in the uninsured of 14 million people in 2018 and 24 million in 2026 when compared to current law.
CBO has a poor record of predicting coverage. In 2013 CBO predicted that 24 million people would be on the Obamacare exchanges, that law’s health insurance marketplaces, in 2017. This year, 9.5 million are enrolled.
CBO’s new estimate neglects the behavioral effects that would result from the Republican plan. By dismantling Obamacare, insurance companies would be able to offer a wider variety of plans and people would be more enthusiastic about buying them.
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