Profile picture
Matt Fiedler @MattAFiedler
, 6 tweets, 2 min read Read on Twitter
It’s important to read CBO’s new analyses of the “stabilization” package JOINTLY. Reading just the official cost estimate suggests the package would increase coverage (& the deficit). Reading it with the companion letter shows the package would REDUCE coverage (& the deficit).
CBO’s cost estimate (see cbo.gov/system/files/1…) measures the package against a baseline where CSR payments are still be made. CBO does this because it’s required to, but it’s not the world we’re living in!
Fortunately, CBO has released a companion letter (see cbo.gov/system/files/1…) analyzing the effect of funding CSRs against a baseline where CSRs are NOT being paid. Together, the two analyses can be used to paint a more relevant picture.
In the companion letter, CBO finds that funding CSRs would reduce coverage by 500k-1m people by 2021. That’s because funding CSRs would effectively cut subsidies for many subsidized enrollees. That in turn would reduce the deficit by $29 billion during the budget window.
The cost estimate shows the effect of the rest of the package. CBO estimates that the rest of the package (largely the funding for reinsurance) would increase coverage by <500k in 2021, at a cost of $19 billion during the budget window.
Putting the estimates together, CBO expects the package to reduce coverage, but also reduce the deficit. That’s the same basic tradeoff that often arises: we can spend less on coverage programs if we’d like, but typically at the cost of more uninsured.
Missing some Tweet in this thread?
You can try to force a refresh.

Like this thread? Get email updates or save it to PDF!

Subscribe to Matt Fiedler
Profile picture

Get real-time email alerts when new unrolls are available from this author!

This content may be removed anytime!

Twitter may remove this content at anytime, convert it as a PDF, save and print for later use!

Try unrolling a thread yourself!

how to unroll video

1) Follow Thread Reader App on Twitter so you can easily mention us!

2) Go to a Twitter thread (series of Tweets by the same owner) and mention us with a keyword "unroll" @threadreaderapp unroll

You can practice here first or read more on our help page!

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just three indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member and get exclusive features!

Premium member ($3.00/month or $30.00/year)

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!