Reconciliation: Increases In Affordability Tax Credits Only Temporary

[seafan]

Jon Walker finds another notable detail in the Reconciliation Bill:


March 18, 2010

One of the Democratic leadership’s talking points for the reconciliation bill is that it increases affordability tax credits for people on the exchange. What they aren’t saying is that the increase in subsidies in the Senate bill is only temporary. From the CBO:

An important component of the longer-term analysis is that, beginning in 2019, the reconciliation proposal would change the annual indexing provisions so that the premium subsidies offered through the exchanges would grow more slowly; over time, the spending on exchange subsidies would therefore fall back toward the level under H.R. 3590 by itself.

This means that the increase in affordability tax credits provided by the reconciliation package starting in 2014 would disappear only a few years afterwards. That is a pretty big caveat. Given that this reconciliation bill does not include a public option, Medicare buy-in, a national exchange, a higher medical loss ratio, all-payer, or direct Medicare drug price negotiations, and is unlikely to keep the National Insurance Rate Authority, and now add the fact that the much touted increases in affordability tax credits are only temporary, and it becomes apparent that this reconciliation package is a tremendous wasted opportunity.

Way to go, House Democrats! You basically get one bill a year that can’t be filibustered, and this is all you can think to do with it to “improve” the Senate health care bill?

Maybe people will be healthier in 2019 and won't need as much health care.

:sarcasm:

[Edweird]

1. Well, the 'low' intro prices are also temporary.....

[Luciferous]

2. Kick

[ProSense]

3. Devastating

"fall back toward the level under H.R. 3590 by itself"

President's Proposal:

Affordability Improves the Senate bill’s subsidies for lower income Americans. Makes the tax credits for health insurance premiums more generous for individuals and families with incomes between 250% and 400% of the federal poverty level (FPL). Reduces cost-sharing for individuals and families with incomes between 100% and 250% FPL as compared to Senate bill. Constrains growth in credits if premiums are growing faster than CPI.

Senate:

Families and individuals making under 250% FPL would pay higher premiums than what’s offered in the new proposal and the percent of costs paid for by health insurers is lower in the this bill (as compared to the new reconciliation package) (Spent on subsidies: $436B/10yrs)

House:

Families and individuals earning below 250% FPL would still receive more subsidies under the House bill, but Americans earning more than 250% would pay higher premiums (as compared to the Senate bill.)

link

Kill the bill desperation.

[havocmom]

4. bait & switch already?

Pardon my not being surprised

[happy_liberal]

5. K&R

nt