Paying For The Health Bill
One of the more interesting conundrums of the health bill negotiations is the desire to increase the affordability provisions of the bill (in essence, the subsidies, the Medicaid eligibility will almost certainly remain at 133% of FPL as set by the Senate bill) while at the same time cutting the reach of the excise tax (without replacing it with with the House surtax on the wealthy.) E.J. Dionne writes:
Almost everyone in both houses wants to find ways of making insurance more affordable. Steps in this direction would include more generous subsidies for the purchase of insurance than those in the Senate bill and expanding its Medicaid provisions. The bill's price tag will grow from the Senate's $871 billion over a decade, probably to somewhere between $930 billion and $950 billion.
Expanding Medicaid eligibility would actually make the bill cheaper, because Mediciad will be less expensive than subsidizing the purchase of private insurance. Of course, it will not happen because that takes away market share from the insurance companies. The question then is how would the expanded subsidies be paid for? The excise tax is under assault:
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