Obama Care Subsidies are Premium Support

Just like in the Paul Ryan plan. This is from Austin Frakt:

  • Through 2017, subsidies are forced to grow at the pace of premiums, so there is no erosion of their purchasing power.
  • Subsidies may grow more slowly after that, but, if so, the rate of growth would vary by income level. They would fall behind premiums more quickly over time at higher incomes. So, it’s a progressive erosion of purchasing power.
  • This erosion doesn’t happen at all unless spending on exchange subsidy premiums exceeds a certain fraction of GDP.

Full post is worth reading, including reference to Henry Aaron article.

Here is a list of over 200 economists and health policy experts opposing Ryan’s approach (because it has premium support) and endorsing Obama Care (because they think it does not). You just can’t make this stuff up.

Comments (8)

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  1. Tom H. says:

    Thanks for this post. Very interesting information.

  2. Larry C. says:

    200 what? These are not economists. They are EINOs. (Economists In Name Only.)

  3. Joe S. says:

    WOW!!

  4. Don Levit says:

    Is it fair to say that premium supports will merely encourage providers to increase prices, much as college credits have helped to increase the cost of a college education?
    Don Levit

  5. Alexis says:

    Interesting post. Has no one read the bill??

  6. Devon Herrick says:

    The 200 left-leaning policy wonks who signed the letter fail to appreciate the unsustainable nature of the current Medicare program. If it cannot be sustained; it probably won’t. It is better to find a substitute while there is still time.

  7. Neil H. says:

    What a surprise.

  8. Jeff says:

    Interesting. And surprising. Then again, maybe it isn’t surprising.