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CBO in Their Own Words: AHCA’s Patient and State Stability Fund

Mar 17, 2017

WASHINGTON, DCEarlier today we shared an explainer on a provision within the American Health Care Act (AHCA) that would provide solutions to help lower costs and repair insurance markets damaged by Obamacare: The Patient and State Stability Fund. This program provides states $100 billion over 10 years to promote innovative solutions to lower costs and increase access to health care for their unique patient populations.

And while the Congressional Budget Office (CBO) has repeatedly missed the mark on the individual mandate, they appear to understand the value of giving states flexibility to innovate.

Here’s what they have to say:

  • “In 2020, CBO estimates, grants to states from the Patient and State Stability Fund, once fully implemented, would significantly reduce premiums in the nongroup market and encourage participation by insurers.”
     
  • “…several factors that would decrease those premiums: grants to states from the Patient and State Stability Fund…”
     
  • “…the Patient and State Stability Fund would help stabilize premiums…”
     
  • “Grants from the Patient and State Stability Fund would begin to take effect in 2018 to help mitigate losses and encourage participation by insurers.”
     
  • “…programs supported by the Patient and State Stability Fund are estimated to reduce premiums.”
     
  • “Under the legislation, in the agencies’ view, key factors bringing about market stability include subsidies to purchase insurance, which would maintain sufficient demand for insurance by people with low health care expenditures, and grants to states from the Patient and State Stability Fund, which would reduce the costs to insurers of people with high health care expenditures.”

It’s not just CBO. Respected policy analysts and actuaries like Avalere and Oliver Wyman agree too.

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Subcommittees: