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Health Plan Is Grim News For Millions, Budget Report Shows

Health Plan Is Grim News for Millions, Budget Report Shows

The proposed replacement for the Affordable Care Act (ACA) will leave millions of people without health insurance and make coverage skimpier for those who still have it. That’s according to the Congressional Budget Office, which just issued its highly anticipated report on that plan.

The House of Representatives passed the replacement bill, called the American Health Care Act, on May 4 without giving the nonpartisan economists at the budget office a chance to look at it. Their analysis is grim news if you have a pre-existing condition or don’t have a lot of money. Here are six key points from the new report:

1. Fewer people will have health insurance—23 million fewer. The budget office expects 51 million Americans to be uninsured by 2026 under the replacement plan, versus 28 million if the ACA stays in place. The largest group to be thrown off insurance will be the 14 million people who would have had coverage through the ACA’s expanded Medicaid program. The rest will be people who can no longer afford coverage on the individual market.

2. Nearly 90 percent of the funding will disappear for Medicaid expansion and premium subsidies to help people buy private insurance. Over the next 10 years, that includes $834 billion in cuts in Medicaid spending, and a net reduction of $276 billion in premium subsidies.

Offsetting that is only $138 billion in new spending to help states stabilize premiums and offer a bit of help to people with pre-existing conditions. The replacement plan would reduce the U.S. deficit by $119 billion, with most of the savings going toward eliminating the ACA’s taxes on high-income investors and health care companies.

3. The new subsidy formula will make insurance unaffordable for lower-income consumers. The ACA now protects low- and moderate-income consumers from high premiums by capping the…

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