The Health Insurance Simulation Model Used in Preparing CBO’s 2018 Baseline
CBO uses the Health Insurance Simulation Model to estimate the cost of various health care proposals, including the expansion of public programs, mandates for people to have insurance, and insurance market reforms.
The first version of the Health Insurance Simulation Model (HISIM) was developed by CBO in 2002 to model various proposals affecting health insurance coverage, including direct subsidies, changes to tax incentives, and insurance market reforms. HISIM has been expanded to accommodate additional proposals, including expansion of public programs, mandates for people to have insurance, and further insurance market reforms.
The model is updated regularly to incorporate new data, CBO’s most recent economic forecast, changes in law or regulations, and technical improvements. HISIM helps CBO prepare baseline budget projections, which are published two or three times a year and are the basis for estimating budgetary effects of proposals relative to current law.