The CBO says few low-income people would purchase any plan under GOP health bill.
But the most devastating of the CBOs conclusions can be found on page eight. There, the Congressional Budget Office says the BCRA would make decent insurance so expensive that few low-income people would purchase any plan at all. Heres the section:
"Under this legislation, starting in 2020, the premium for a silver plan would typically be a relatively high percentage of income for low-income people. The deductible for a plan with an actuarial value of 58 percent would be a significantly higher percentage of income also making such a plan unattractive, but for a different reason. As a result, despite being eligible for premium tax credits, few low-income people would purchase any plan, CBO and JCT estimate."
A bit of background is helpful. A silver plan is an insurance plan that covers 70 percent of a persons expected health care costs. Obamacares subsidies were designed to make silver plans affordable and to limit out-of-pocket costs. The BCRA cuts Obamacares subsidies and designs its own subsidies around plans that cover 58 percent of expected health care costs. Those plans, the CBO estimates, will come with deductibles of around $6,000 which means they would bankrupt many poor people before they ever got through the deductible.
On page 27 of the report, CBO offers an illustrative example. Imagine, they say, a person who makes 75 percent of the poverty line and is currently on Medicaid. The deductible would be more than half their annual income. They would be paying for health insurance that they would destroy them financially if they tried to use it.
So here is what the CBO is saying: The BCRAs subsidies are too small to make the silver plans affordable for low-income people, and the plans it is trying to make affordable the ones that cover 58 percent of expected costs carry such high deductibles that low-income Americans wont buy them because they wont be able to afford to use them.
This, then, is what the BRCA actually does: It makes health insurance unaffordable for poor people in order to finance a massive tax cut for rich people.