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President Joe Biden’s Build Back Better bill, a multi-trillion spending spree being considered in Congress, forces taxpayers to shell out $47,000 per year for each new Medicaid and Obamacare enrollee.
That’s two to four times what a private health insurance policy costs, at roughly $12,000 to $25,000 a year on average.
Most of the money in Biden’s plan goes directly to insurance companies.
In a real sense, the bill is more of a subsidy for Big Insurance than an actual form of health care access for real people.
The bill includes several provisions designed to increase health insurance coverage that are wasteful in nature:
According to the Congressional Budget Office, the bill’s health care provisions would cost taxpayers $553.2 billion.
How many more Americans would obtain health insurance coverage overall because of this spending?
About 3.9 million people, according to CBO.
About 7.6 million would gain coverage, but another 3.7 million would lose coverage — for a net increase in insurance coverage of 3.9 million.
The losses would be concentrated among privately purchased and workplace plans. The gains would be concentrated in Medicaid and Obamacare plans.
Here’s the math:
To hide the full cost of the bill.
By law, CBO must assume the bill will be implemented exactly as written, and as written it only provides the money for three years.
At least three reasons:
First, government programs are inefficient, compared to the private sector, at the best of times.
Second, the bill wastefully steers billions of taxpayer money to wealthy households and able-bodied working adults who don’t need the help.
Third, the subsidies are structured to be highly inflationary.
Specifically, they would drive up the overall cost of health insurance by giving insurers a strong incentive to drive up the price of their offerings in the Obamacare exchanges.
This would happen because taxpayers would have to automatically cover a fixed percentage of the price, with no upper limit.
There would only be two cost controls: enrollees would have a choice of plans (competition), and, in most cases, enrollees would also have to cover at least part of the cost. But because the subsidies are very generous, these cost controls would be weak in practice.
There’s no way around it. The health care provisions of Build Back Better are bloated and misguided. They can’t be fixed.
They should be scrapped and, instead of a wasteful “government option” approach, lawmakers should give all Americans a health care personal option.
Get questions to your answers about the personal option today.
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