TechRadardom article The 2017 Congressional budget office report on the Affordable Care Act has been widely hailed as a triumph for progressives and liberals.
But as we reported earlier this week, the report also raises new questions about the impact of the Affordable Health Care Act on the country’s economic health.
In the past, we’ve explained why the ACA has failed to address health care’s biggest problem: a lack of competition and a lack to provide the health care that Americans want.
Today, we’ll look at a new study by the Congressional Budget Actuary that highlights the CBO’s findings on the impact on the economy of the ACA and the economy in general.
To make the case that the ACA is working, CBO found that the uninsured rate fell by more than 1.6 million people in 2020.
That was a small fraction of the population that was covered under the ACA.
That means that even if the ACA had not expanded Medicaid and reduced premiums, it would have had a net effect of about 1.2 million people losing their coverage.
That’s a big deal, and it’s one reason why Democrats should embrace the CBO report, as the Trump administration has argued.
As for the ACA’s impact on economic growth, CBO says the expansion of Medicaid has resulted in a significant positive economic impact.
CBO found a positive multiplier effect of 2.7 on gross domestic product in 2020, while the ACA saw a negative multiplier effect, of 1.3.
That doesn’t mean that the expansion was the only positive economic result of the law.
But it does mean that in 2020 the economy expanded by about $1 trillion, which is more than double the size of the expansion in 2016.
CBO’s report comes on the heels of a recent report from the Congressional Research Service that found that repealing the ACA would reduce GDP by $3.3 trillion over 10 years.
As we noted in our coverage of that report, CBO also noted that the Congressional Progressive Caucus (CPC) has argued that repeal of the act would lead to job losses and cost tens of millions of Americans their health insurance.
And we noted last week that the Republican Party has made the case for repealing the law, too, citing economic data to support that claim.
That said, we also note that CBO’s study also found that premiums have risen on average by about 9% for the year since the ACA was enacted.
CBO says that is “a good indicator that people are paying more for coverage, but that’s not the whole story.
The most important measure of premiums in the ACA marketplace is the ratio of the percentage of people who paid their premiums through their employer.”
CBO’s finding is that the premium growth rate for most consumers is 2.4%, a figure that the CBO says is consistent with other studies.
For example, an analysis by the Urban Institute found that in 2014 premiums rose at a rate of 2% a year, while average premiums rose only 0.5% a season.
CBO also notes that the average rate of growth in premiums since the act went into effect is 2%, so the ACA “is probably a net positive for the economy, but it’s not a net negative.”
The CBO also points out that the economy has grown significantly faster under the Trump Administration than under the previous Democratic administration.
That, too is true.
The CBO found the economy grew by $1.4 trillion in 2017, $1,726 billion in 2016, and $1 billion in 2015, which all were larger than under President Obama.
But that’s because the CBO estimates the economy would be growing at an average annual rate of 4% during the next 10 years, instead of 4.3% as the CBO found under Obama.
The Congressional Budget office says the CBO study “is the first official analysis of how the ACA affects the economy.”
So, what do you think?
Should the CBO find that the law has led to a net economic gain?
Or does it still provide the benefits conservatives and Democrats argue it would?