Private Health Insurance

CBO periodically issues a compendium of policy options and their estimated effects on the federal budget. This report presents 76 options for altering spending or revenues to reduce federal budget deficits over the next decade.

CBO published updated baseline projections of health insurance coverage and federal subsidies for it. The projections are described in an article published in the journal "Health Affairs" and a presentation on CBO’s website.

In 2023, federal subsidies for health insurance are estimated to be $1.8 trillion, or 7.0 percent of gross domestic product (GDP). In CBO and JCT’s projections, those net subsidies reach $3.3 trillion, or 8.3 percent of GDP, in 2033.

CBO released updated projections of health insurance coverage for people under age 65 in the journal Health Affairs.

CBO issues a volume describing 17 policy options that would each reduce the federal budget deficit by more than $300 billion over the next 10 years or, in the case of Social Security options, have a comparably large effect in later decades.

CBO identified policy approaches that federal lawmakers could adopt to reduce the prices that commercial insurers pay for hospitals’ and physicians’ services, thereby lowering health insurance premiums and the cost of federal subsidies.

CBO examined potential reasons that the prices paid by commercial health insurers for hospitals’ and physicians’ services are higher, rise more quickly, and vary more by area than the prices paid by the Medicare fee-for-service program.

CBO describes the key design considerations for a federally administered nongroup health insurance plan—often referred to as a public option—and some of their major implications.

CBO examines four policy approaches that could achieve near-universal health insurance coverage.

In 2019, about 12 percent of people under 65 were not enrolled in a health insurance plan or a government program that provides financial protection from major medical risks. In this report, CBO describes that uninsured population.

CBO presents its projections of what federal deficits, debt, spending, and revenues would be for the next 30 years if current laws governing taxes and spending generally did not change.

This report describes the methods used to assess how the new rules would affect the number of people who obtain health insurance and the costs of federal subsidies for that coverage. It also provides details about those projected effects.