CBO to Trump: Ending Cost Sharing Increases Deficit

The video discusses different healthcare plans available in the exchanges, such as bronze, silver, and gold, and their respective actuarial values. It explains how cost sharing works and the assistance provided to those near the poverty line. The video also explores the potential impact of halting cost sharing reduction payments, including increased premiums, a rise in the federal deficit, and changes in the number of uninsured individuals. The discussion highlights the trade-offs involved in healthcare reform and the financial implications for both the government and individuals.

What is the actuarial value of a gold health insurance plan?

• 60%

• 70%

• 90%

• 80%

How does the government assist individuals making between 100% and 250% of the poverty line?

• By reducing insurance premiums

• By increasing actuarial value and reducing deductibles

• By offering tax deductions

• By providing free healthcare

What might happen if cost-sharing reduction payments are halted?

• More insurers would enter the market

• Insurance premiums would decrease

• The federal deficit would decrease

• Insurers might exit the market

What is the expected increase in premiums for silver plans by 2020 if cost-sharing payments are halted?

• 10%

• 20%

• 15%

• 25%

What is one potential positive outcome of increased premium tax credits starting in 2020?

• Increased insurance company profits

• Lower federal spending

• A stronger employer-based insurance market

• A decrease in the number of uninsured