Tuesday, January 12, 2010

Subsidies in Senate Health Bill Would Be Inadequate for Many Low- and Moderate-Income Households, Need Improvement in Conference — Center on Budget and Policy Priorities


By January Angeles and Judith Solomon

The health reform bills that the House and Senate have passed would make health coverage more affordable for millions of low- and moderate-income households. Both bills would provide premium and cost-sharing subsidies for people to purchase coverage through the new health insurance exchange. They would also expand the Medicaid program to cover the lowest-income uninsured. While the House and Senate bills take the same general approach to making coverage more affordable, however, they would have markedly different effects on low- and moderate-income people’s budgets and what they would have to pay for coverage and health services. The Senate bill’s affordability provisions raise concern. The premiums and deductibles that many low- and modest-income families would be charged could squeeze their budgets, leaving them with the difficult choice of paying for health care or paying for other necessities.
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