State Flexibility to Address Health Insurance Challenges under the American Health Care Act, H.R. 1628

Issue Brief

1. Congressional Budget Office, cost estimate for the American Health Care Act as passed by the House of Representatives May 4, 2017 (May 24, 2017), (“CBO May 24, 2017 cost estimate”), https://www.cbo.gov/publication/52752.

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2. CBO May 24, 2017 cost estimate, p. 4.

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3. CBO May 24, 2017 cost estimate, p. 14.

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4. Required matching payments would be required for some states that want to participate in a partially state-funded reinsurance program that CMS would operate on their behalf.

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5. CBO May 24, 2017 cost estimate, pp. 13-14; Kaiser Family Foundation staff calculations.

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6. CBO May 24, 2017 cost estimate, pp. 14-15.

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7. State age rating waivers would not appear to be necessary, however, as Section 135 of AHCA establishes new age rating limits of “5 to 1 for adults…or such other ratio for adults…as the State may provide.”

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8. CBO May 24, 2017 cost estimate.

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9. CBO May 224, 2017 cost estimate, pp 13-15.

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10. Congressional Budget Office, cost estimate for the American Health Care Act (March 13, 2017), http://www.cbo.gov/publication/52486.

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11. CBO May 24, 2017 cost estimate, p. 14.

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12. Percentages provided by authors.

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13. American Academy of Actuaries, “How Changes to Health Insurance Market Rules Would Affect Risk Adjustment,” Issue Brief, May 2017, p. 6, https://socialsecuritygame.actuary.org/files/publications/Acad_RA_brief_051017.pdf.

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14. CBO May 24, 2017 cost estimate, p. 21.

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15. CBO May 24, 2017 cost estimate, p. 27.

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16. CBO May 24, 2017 cost estimate, p. 29.

     

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