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Congressional Budget Office Provides Testimony on Effects of Healthcare Reform

From the CBO's Director: 'I testified before the House Energy and Commerce's Subcommittee on Health on CBO's analysis of the Patient Protection and Affordable Care Act (PPACA) and the health care provisions of last year's Reconciliation Act. With the staff of the Joint Committee on Taxation (JCT), we have provided the Congress with extensive analyses of the legislation, and my written statement summarizes that work.

Text of Congressional Budget Office Estimate of the Revenue Effects of H.R. 436, the 'Health Care Cost Reduction Act of 2012'

"H.R. 436 would repeal an excise tax on medical devices scheduled to take effect in January 2013, allow up to $500 of unused balances in health flexible spending accounts to be distributed back to the account holder after the plan year ends, and allow contributions to certain tax-favored health savings accounts to be used to cover the cost of over-the-counter medications. The bill also would eliminate existing limits on the amounts to be repaid by taxpayers who purchase health insurance through exchanges and receive advance payments larger than the premium assistance credits to which they are entitled."

Congressional Budget Office Releases 2012 Long-Term Budget Outlook

"The explosive path of federal debt under the alternative fiscal scenario--which maintains what might be deemed current policies -- underscores the need for large and timely policy changes to put the federal government on a sustainable fiscal course."

Text of Congressional Budget Office Cost Estimate for H.R. 1004, the Health Flexible Spending Arrangements Improvements Act of 2012

"H.R. 1004 would amend the Internal Revenue Code to allow up to $500 of unused balances in health flexible spending arrangements (FSAs) to be distributed back to the account holder within seven months of the close of the plan year. The staff of the Joint Committee on Taxation (JCT) estimates that enacting H.R. 1004 would reduce revenues by about $4 billion over the 2012-2022 period."

Text of the Congressional Budget Office Cost Estimate of the Health Savings Accounts Improvements Act of 2012

"H.R. 5858 would make several changes to the tax treatment of health savings accounts (HSAs). The staff of the Joint Committee on Taxation (JCT) estimates that these changes together would decrease revenues by $173 million in 2013, about $1.8 billion over the 2013-2017 period, and $4.7 billion over the 2013-2022 period."

Text of Nov. 30 Congressional Budget Office Report on Effect of Senate Healthcare Bill on Health Insurance Premiums (PDF)

29 pages. Excerpt: The attachment to this letter responds to your request -- and the interest expressed by many other Members -- for an analysis of how proposals being considered by the Congress to change the health care and health insurance systems would affect premiums paid for health insurance in various markets. Specifically, the Congressional Budget Office (CBO) and the staff of the Joint Committee on Taxation have analyzed how health insurance premiums might be affected by enactment of the Patient Protection and Affordable Care Act, as proposed by Senator Reid on November 18, 2009.

Congressional Budget Office Cost Estimate on the Health Opportunity Patient Empowerment Act of 2006 (PDF)

3 pages. Excerpt: H.R. 6134 would make various changes to rules regarding health savings accounts (HSAs). It would allow fully deductible contributions for the entire year in which a high-deductible insurance policy is purchased, repeal certain limitations on HSA contributions, and allow a one-time rollover of funds from certain other accounts into HSAs, among other changes.

U.S. Budget Options: Health Care (PDF)

235 pages. Excerpt: This volume -- which expands on one of the Congressional Budget Office's (CBO's) regular reports to the House and Senate Committees on the Budget -- presents 115 options for reducing (or, in some cases, increasing) federal spending on health care, altering federal health care programs, and making substantive changes to the nation's health insurance system.

The Effects of Two Specified Policy Options for Health Care on the Federal Budget Deficit (PDF)

4 page Letter to Ranking Member, House Committee on the Budget. Excerpt: This letter responds to questions you asked about how two policy options you presented would affect the budget deficit over the long term. One option would replace the current tax exclusion for premiums foremployment-based health insurance with a tax credit that would grow overtime at a rate less than that of health care inflation. The other option would convert Medicaid into a defined-contribution program with federal outlays increasing over time at a rate less than that of health care inflation. In the Congressional Budget Office's (CBO's) view, both options would reduce future budget deficits, relative to projections under current law, by amounts that increased over time. The analysis presented in this letter covers only the two general policy concepts described here and does not represent an analysis of any particular legislation.

CBO Testimony to House Budget Committee on Key Design Components and Considerations for Establishing a Single-Payer Health Care System

"CBO conveyed two main points in its testimony: First, moving to a single-payer system would be a major undertaking. It would involve significant changes for all participants--individuals, providers, insurers, employers, and manufacturers of drugs and medical devices. Because health care spending currently accounts for about one-sixth of the nation's economic activity, those changes could significantly affect the overall U.S. economy. And the transition toward a single-payer system could be complicated, challenging, and potentially disruptive. Second, to establish a single-payer system, lawmakers would need to make many decisions and would face complex trade-offs."