“Two bipartisan ObamaCare fixes being pushed by GOP Sen. Susan Collins (Maine) would reduce premiums by 18 percent in 2019, according to a new study.”
“Study: ObamaCare bills backed by Collins would lower premiums”
By: Peter Sullivan
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“Two bipartisan ObamaCare fixes being pushed by GOP Sen. Susan Collins (Maine) would reduce premiums by 18 percent in 2019, according to a new study.
“The study from Avalere, a consulting firm, finds that the two bills would more than cancel out the projected premium increase from repealing ObamaCare’s individual mandate.
“Collins secured a commitment from Senate Majority Leader Mitch McConnell (R-Ky.) to support passage of the two bills before the end of the year, in exchange for her vote for tax reform, which includes repeal of the ObamaCare mandate.
“The two bills provide funding for payments to insurers, known as Cost-Sharing Reductions (CSRs), and for “reinsurance,” which is money to pay for the costs of sick enrollees and bring down premiums.
“Avalere finds those two proposals, with $5 billion per year in reinsurance funding, would reduce premiums by 18 percent in 2019. That is more than the 10 percent increase in premiums from repealing the mandate.
“Reinsurance accounts for 4 percent and CSRs for the other 14 percent.
“‘From a premium point of view, we do think reinsurance and CSRs probably covers the mandate,’ said Caroline Pearson, a senior vice president at Avalere.”
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