Health Care Reform UPDATE 6 (CBO Assessment of Republican Alternative Bill)

November 5, 2009

Health Care Reform UPDATE 6 (CBO Assessment of Republican Alternative Bill)


The Republicans in congress offered an alternative bill to reform health care in America. The CBO has made a preliminary assessment of the bill on its costs and viability.


Here is the outline of the CBO’s assessment of the Republicans’ alternative bill:

  • reduce federal deficits by $68 billion over the 2010-2019 period
  • increase rates of insurance coverage by reducing its costs (premium)
  • Limits on costs related to medical malpractice (“tort reform”)
  • An increase in funding for HHS investigations into fraud and abuses
  • Changes to health savings accounts (HSAs) to allow funds in such accounts to be used to pay premiums
  • Make health insurance portable
  • Allow Americans to buy health insurance across state lines
  • premiums per enrollee in the United States, relative to what they would be under current law-by 7 percent to 10 percent in the small group market, by 5 percent to 8 percent for individually purchased insurance, and by zero to 3 percent in the large group market.


Read full text of CBO Director’s blog: