Five Ways the Senate Health Care Bill Raises the Cost of Insurance

For indispensable reporting on the coronavirus crisis, the election, and more, subscribe to the Mother Jones Daily newsletter.

The Senate health care bill takes an axe to Medicaid, but it also does a ton of damage to private insurance purchased on the exchanges. It does this in five ways:1

  • Tax subsidies are reduced right out of the gate by changing the benchmark used from “second-lowest cost silver plan” to “applicable median cost benchmark plan.” The “applicable” median plan has an actuarial value of 58 percent, compared to a minimum of 70 percent for a silver plan. This makes it much cheaper, and thus makes the benchmark subsidies lower.
  • Subsidies stop entirely at an income of about $42,000, compared to $48,000 currently.
  • The age band is increased from 3:1 to 5:1, which will increase premiums for older workers.
  • Obamacare’s essential health benefits are eliminated, which allows insurers to offer crappier insurance.
  • CSR subsidies are eliminated, which will substantially increase deductibles and copays for poor people.

The end result of all this is that subsidies will go down, coverage will get worse, and deductibles and copays will get higher. Older people will also see an increase in their premiums.

How much does all this add up to? Quite a bit, I’m sure, but we’ll have to wait for the CBO score to put a solid number on it.

1That’s how many I’ve discovered so far, anyway. There are probably other little gems hidden inside the bill that I haven’t caught. I’ll add them to the list when I hear about them.

UPDATE: My original post used the wrong excerpt of the bill to illustrate the elimination of essential benefits. It’s actually part of something called a “1332 waiver,” which allows states to apply for an exemption to some of Obamacare’s requirements. Among other things, this exemption can include essential benefits.

SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

payment methods

SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate