Insurers could lose billions of dollars next year as the Trump administration proposes to overhaul the nation’s health insurance marketplaces, according to a new analysis by the nonpartisan Congressional Budget Office.
The nonpartisan analysis also said that premiums would rise by an average of 10% next year.
The CBO estimates that the Trump Administration’s plan would raise premiums by an estimated $337 billion in 2018, which would be a 3.7% increase over the 2017 rate.
The Congressional Budget is the government’s official scorekeeper for the federal budget and a common measure used by lawmakers to estimate the cost of federal programs.
But its report on the new Trump proposal came as Republicans and some Democrats are pushing the Trump White House to eliminate the requirement that most people with pre-existing conditions be enrolled in the ACA’s insurance market.
In their draft of the new legislation, the Trump campaign has suggested the plan would leave millions without health insurance.
“It is the Trump team’s position that they would be willing to leave the ACA and replace it with a market where millions of Americans would be left without coverage,” said a senior White House official, who spoke on condition of anonymity to discuss internal deliberations.
The official also said the administration would continue to offer “subsidies” to people who buy insurance on the individual market.
Insurers are not expected to stop selling coverage until 2018, but they will be required to provide people with health problems coverage.
Trump has made a point of trying to repeal the Affordable Care Act, also known as Obamacare, and is now seeking the endorsement of several conservative Republicans to replace him.
Republicans in the House have repeatedly said they would vote against any legislation that eliminates or drastically changes the ACA.
But the Congressional Budget office said the Trump plan could cause significant economic damage and would increase costs for people who have insurance and those who do not.
The report said the new premium increases would result in $11 billion in revenue loss to insurers next year, compared to the 2017 baseline.
For the year 2020, the CBO estimated the cost to insurers of covering 100 million people would increase by an extra $15 billion.
And for 2018, the projected increase would be $4 billion, an increase of $9 billion.
Insurer payments would be cut by $4.7 billion next year because of the increased premiums, the report said.
The new administration would also likely lower the amount insurers would be allowed to charge people who get coverage through a subsidy or the expansion of Medicaid, the federal health program for low-income Americans.
“Under the Trump proposal, insurers would have the option to lower the subsidy to people in 2018 and 2019 and the amount of payments they would have to make would increase,” the CBO said.
It also said premiums would go up by an additional $2,300 next year and $4,000 in 2020.
“This proposal would result not only in higher premium increases, but also a substantial increase in the costs of covering low- and moderate-income people with preexisting conditions,” the report concluded.
The Office of Management and Budget said that the CBO’s analysis was preliminary and did not include the full impact of the Trump Plan.
It did not say what impact the plan might have on premiums.
The office did not immediately respond to a request for comment on the report.
The House GOP health care plan calls for a $500 billion Medicaid expansion to cover nearly 200 million low-wage workers.
Trump campaigned on repealing and replacing the ACA, and has promised to “end Obamacare” if elected.
His campaign has also suggested that the ACA would not have saved many people from losing their health insurance, a claim that Republicans and Democrats have dismissed as untrue.
In an interview on MSNBC in January, Trump said that millions of people who were uninsured under the ACA had gotten coverage through Medicaid.
“The Affordable Care act, as I say, they didn’t have insurance.
So, they had to go to Medicaid,” Trump said.
“But Medicaid’s been a disaster, frankly, for people.
You know, we have no choice.
We’re going to make Medicaid bigger, but we’re going have to give states more money.”
The CBO’s report said that some of the proposed changes to the ACA could reduce the number of people covered by Medicaid.
The Trump campaign said the plan does not have enough details to estimate how many people would lose coverage under the plan, or how many of those people would get coverage.
“I don’t know how we’re gonna do it, but I’m telling you, I’m sure it’s gonna be a great plan,” Trump told Fox News.
“And I mean, I know they’re gonna say it’s the big government, big-spending, big government thing, but it’s actually really very small government.
And you know, you take a look at the big countries that do it well, like Canada, Denmark, Germany, and even Japan, and you have big government.
So they’re really really very very small countries