Saturday, October 14, 2017

Healthcare Hijincks

Looks like a pretty good article on the situation here at Health Affairs Blog.

Trump's ending of the CSR payments might end up as fiscal stimulus via increased tax credits for resultant increases in qualifying premium payments.

The Consequences Of Ending The CSR Payments 
The effect of terminating the payments has been well analyzed, including a report from the Congressional Budget Office. 
It will drive up premiums as insurers attempt to cover the cost of the reductions. As premiums go up, so will premium tax credits. 
Indeed, the government will probably pay more in premium tax credits than it saves in cost-sharing reduction payments.

Convoluted but may decrease net TGA deposits (via the tax credits) YoY anyway...


Ben Johannson said...

People with modest incomes who still earn too much for tax credits are likely to start dropping their coverage as premiums rise. My guess is this will be concentrated among the young and that in turn will accelerate upward price adjustment.

Footsoldier said...

Tax credits

What role do they play in keeping down wages ?

Apart from the US not being anywhere near full employment. Combine this with tax credits and surely the FED would see the trees instead of looking at wood.

In otherwords in a world without tax credits would wages rise ? Would be interesting to see some graphs and see the real effects of tax credits after they were introduced.