CBO: Bill to shore up ObamaCare would reduce premiums by 10 percent

CBO: Bill to shore up ObamaCare would reduce premiums by 10 percent
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An updated bill to shore up ObamaCare's markets could reduce premiums by 10 percent next year and by 20 percent in 2020 and 2021 for states that get extra funding from the administration, according to preliminary estimates from the Congressional Budget Office (CBO). 

The bill, originally introduced last year by Sens. Lamar AlexanderLamar AlexanderMcConnell gets GOP wake-up call The Hill's Morning Report - Presented by Alibaba - Democrats return to disappointment on immigration Authorities link ex-Tennessee governor to killing of Jimmy Hoffa associate MORE (R-Tenn.) and Patty MurrayPatricia (Patty) Lynn MurrayUnder pressure, Democrats cut back spending Overnight Health Care — Presented by Carequest — Colin Powell's death highlights risks for immunocompromised Senate Democrats ditch Hyde amendment for first time in decades MORE (D-Wash.), could be added to a long-term spending package Congress hopes to pass next week. 

Alexander and Sen. Susan CollinsSusan Margaret CollinsThe Hill's Morning Report - Presented by Uber - Biden makes his pitch as tax questions mount Emanuel defends handling of Chicago police shooting amid opposition to nomination Emanuel to take hot seat in Senate confirmation hearing MORE (R-Maine) made several changes to the bill since it was introduced in October to gain support from House Republicans, including an added requirement that funds not be used for plans that cover abortions.

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A Murray aide said she is continuing to negotiate with Alexander. Murray has previously called the abortion restrictions a "no go."

“Sen. Murray is continuing to negotiate with Chairman Alexander and is hopeful Republicans will agree soon to policies that help bring down premiums and undo some of the damage Republican health care sabotage has caused, rather than once again putting partisan ideology and politics ahead of families’ health," an aide said.

Other changes in the bill include $30 billion for three years of funding for reinsurance and invisible high risk programs — intended to help insurers cover the costs of especially sick and costly patients in an effort to bring down premiums for everyone else — and three years of key ObamaCare payments called cost sharing reduction subsidies (CSRs). Those subsidies reimburse insurers for giving discounted copays and deductibles to low-income patients. 

Previous versions of the bill only funded two years of CSRs and did not include funds for reinsurance.

Democrats wanted three years of CSR payments, and Collins pushed for reinsurance funding to mitigate the effects of repealing ObamaCare's individual mandate. Republicans repealed the mandate in their tax-cut law.

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The revised bill would also allow states more flexibility to design their own health plans and would streamline the process for getting approval from the federal government to do so. 

It would also allow the sale of catastrophic insurance plans to all Americans regardless of age. 

These plans, which tend to have lower premiums than other ObamaCare plans, have higher out-of-pocket costs and are currently only available for those under the age of 30. 

Alexander said Tuesday he is "working hard" to get the bill in the omnibus next week. 

However, it's still unclear if the proposal has the support needed to pass. 

Democrats oppose the added abortion restrictions, but Speaker Paul RyanPaul Davis RyanJuan Williams: Pelosi shows her power Cheney takes shot at Trump: 'I like Republican presidents who win re-election' Cheney allies flock to her defense against Trump challenge MORE (R-Wis.) told members he would not bring the bill up for a vote in the House without them.

Despite the addition of abortion language, some conservatives in the House have been resistant to the idea of stabilizing ObamaCare, calling the plan a "bailout" for insurance companies.