Tags: Healthcare Reform | GAO | report | subsidies | healthcare | Obamacare

GAO Report: Obamacare Tax Subsidies Drive Coverage

By    |   Monday, 23 Mar 2015 04:54 PM

The access to Obamacare tax credits helped drive the healthcare coverage of millions of Americans, a new report from the government's watchdog agency says.

In its 63-page report, the Government Accountability Office writes that subsidies slashed healthcare costs, which "likely contributed to an expansion of health insurance coverage" in 2014.

The Hill reports the new study supports the Obama administration’s persistent assertion that tax credits are a central part of the healthcare law's success and comes as the Supreme Court is considering a challenge to the subsidies in 34 states.

If the court rules against the Obama administration in the case of King v. Burwell, about 7.5 million people in the affected states could lose the financial help, which in turn could lead to a "death spiral" in the insurance market.

Nearly 90 percent of people who signed up for Obamacare qualify for a subsidy, The Hill notes, and with the help of the tax credits, the average monthly premium goes down to $264 a month from $346 a month.

The report also notes that despite the enrollment of about 8 million in Obamacare, some 16 percent of non-elderly adults are still without healthcare the majority of whom are poor or undocumented and wouldn't face penalties under the healthcare law.

The report warns, however, that many who are covered are still getting hit hard.

"All exchange enrollees are vulnerable to high out-of-pocket costs," according to the report, adding: "Some insurers have limited the networks of providers covered by the plans offered on the exchanges."

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The access to Obamacare tax credits helped drive the healthcare coverage of millions of Americans, a new report from the government's watchdog agency says.
GAO, report, subsidies, healthcare, Obamacare
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Monday, 23 Mar 2015 04:54 PM
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