Skip to main content

The context you need, when you need it

When news breaks, you need to understand what actually matters — and what to do about it. At Vox, our mission to help you make sense of the world has never been more vital. But we can’t do it on our own.

We rely on readers like you to fund our journalism. Will you support our work and become a Vox Member today?

Join now

The CBO just released a report that should worry Sens. Susan Collins and Lisa Murkowski

CBO: The GOP tax bill’s health care scheme won’t stop coverage losses or premium hikes.

A new report from the Congressional Budget Office dealt what should be a crushing blow to the tax bill: The deal that was crafted to win key senators who objected to the bill’s provision that would leave millions uninsured won’t actually stanch the loss in coverage.

Still, this report probably won’t change much.

With moderates expressing concern over a provision that would repeal Obamacare’s individual mandate — leaving an estimated 13 million more uninsured by 2027 — Republican leadership hatched a plan to simultaneously pass a bill to stabilize the Obamacare marketplaces, a proposal negotiated by Sens. Lamar Alexander (R-TN) and Patty Murray (D-WA).

But this proposal hit a major snag Wednesday when a new CBO report found passing the Alexander-Murray proposal — the centerpiece of which is funding Obamacare’s cost-sharing reduction subsidies that Trump has threatened to pull — would not in fact help mitigate the coverage losses and premium hikes triggered by repealing the individual mandate.

Previous estimates from the CBO found that repealing the individual mandate, the Obamacare policy that penalizes people who opt out of buying health insurance, would leave 13 million fewer insured by 2027 and increase premiums by an average of 10 percent over the next decade.

“If legislation were enacted that incorporated both the provisions of the Bipartisan Health Care Stabilization Act and a repeal of the individual mandate ... the effects on the premiums and the number of people with health insurance coverage would be similar,” Keith Hall, the CBO’s director, wrote in a letter to Murray.

This will prove to be a major test for senators like Lisa Murkowski (R-AK) and Susan Collins (R-ME), who have previously expressed concern about repealing the individual mandate but signaled that the addition of Obamacare stabilization packages could be enough to win their votes.

On Tuesday, Collins told reporters that she would like to see more than just the Alexander-Murray proposal passed to support repealing the individual mandate. She has another bipartisan proposal with Sen. Bill Nelson (D-FL) that gives $4.5 billion in federal funding to health insurers to offset any premium increases after repealing the individual mandate.

The president and Republican leadership have shown interest in passing both those proposals to win her vote on tax reform.

Go deeper:

  • Vox’s Dylan Scott explains why the Alexander-Murray stabilization deal addresses an entirely different set of concerns than the individual mandate.
  • Republicans want to repeal the individual mandate to make the math work in their tax reform proposal. Here’s why.

More in Politics

The Logoff
Trump’s DOJ wants to undo January 6 convictionsTrump’s DOJ wants to undo January 6 convictions
The Logoff

How the Trump administration is still trying to rewrite January 6 history.

By Cameron Peters
Politics
Donald Trump messed with the wrong popeDonald Trump messed with the wrong pope
Politics

Trump fought with Pope Francis before. He’s finding Pope Leo XIV to be a tougher foil.

By Christian Paz
Podcasts
A cautionary tale about tax cutsA cautionary tale about tax cuts
Podcast
Podcasts

California cut property taxes in the 1970s. It didn’t go so well.

By Miles Bryan and Noel King
Podcasts
Obama’s top Iran negotiator on Trump’s screwupsObama’s top Iran negotiator on Trump’s screwups
Podcast
Podcasts

Wendy Sherman helped Obama reach a deal with Iran. Here’s what she thinks Trump is doing wrong.

By Kelli Wessinger and Noel King
Politics
The Supreme Court could legalize moonshine, and ruin everything elseThe Supreme Court could legalize moonshine, and ruin everything else
Politics

McNutt v. DOJ could allow the justices to seize tremendous power over the US economy.

By Ian Millhiser
The Logoff
The new Hormuz blockade, briefly explainedThe new Hormuz blockade, briefly explained
The Logoff

Trump tries Iran’s playbook.

By Cameron Peters