Costs and Offsets in the House Tri-Committee Health Care Reform Plan
July 14 - Earlier today, House Democrats released a draft of the America's Affordable Health Choices Act , along with a series of summary documents explaining components of the bill. The Congressional Budget Office also released a Preliminary Analysis on certain provisions of the bill, related to coverage expansion
|Credits for Small Businesses||$53|
|Individual Mandate Penalties||$29|
|Medicare Advantage Cuts||$156|
|Hospital Payment Reductions||$102|
|Drug Price Reductions||$110|
|Other Health Care Savings||>$100|
|Surtax on High Earners||$544|
|Closing of Tax Loopholes||$37|
- Will the bill be deficit neutral at the end and beyond the 10-year budget window? Or only on average over the first ten years?
- How will the Committees pay for their $229 billion plan to stabilize physicians' payments in Medicare by reforming the Sustainable Growth Rate formula?
- What will Democrats do if their $550 billion surtax is too unpopular to pass? (See our list of potential offsets here)
- How will the House reconcile their costs and offsets with proposals put forward by the Senate HELP Committee, Senate Finance Committee (pending), and White House?
The most important question, though, is the following: How will this bill slow the long-term growth of health care spending? As we argued in Principle #1: Slowing Health Care Cost Growth, this "must be at the center of any health care reform plan" - and it will be the subject of our next blog post.