Reactions Vary To New CBO Health Care Analysis – Dems: YAY! Republicans: BOO!

White House Communications Director Dan Pfeiffer
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As the debate kicks off in earnest today, the parties are predictably using the new Congressional Budget Office analysis of the Senate health care bill to their own benefit.

The White House is hailing the report as “more good news” about what the bill would mean for families.

White House communications director Dan Pfeiffer blogs:

Americans buying comparable health plans to what they have today in the individual market would see premiums fall by 14 to 20 percent.
Those who get coverage through their employer today will likely see a decrease in premiums as well.
And Americans who currently struggle to find coverage would see lower premiums because more people will be covered.
In addition to the welcome relief on costs, the CBO reports that Americans will also have better insurance options. The CBO assumes that many people will take advantage of these better options and “buy up” to purchase better plans than are currently offered in the individual market.

Republicans, meanwhile, are seizing on the report to attack the reform bill.

The Republican Policy Committee says, “Premiums for individuals without employer-sponsored coverage would increase 10 to 13 percent (or $2,100 per family in 2016). The Democrats’ bills therefore require individuals to purchase insurance that is more expensive than would be available under current law. In fact, CBO found that most people would see premium reductions under the bill.”

This is true in a technical sense, as most people purchasing insurance on the individual market will be receiving subsidies that more than make up for the increased cost of premiums.

Senate Minority Leader Mitch McConnell followed suit on the floor this afternoon: “After 2,074 pages, trillions of dollars in new government spending, massive taxes and a half-trillion dollars in cuts to Medicare, most people, Mr. President, most people will see their insurance premiums go up,” McConnell said.

In fact, the CBO report concluded that most peoples’ premiums will drop. Premiums will rise on average in the individual market, but, as noted above, those costs will be offset to a great degree by federal premium assistance.

Additional reporting by Brian Beutler.

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