How The Congressional Budget Office Sees Health Insurance Reform

How The Congressional Budget Office Sees Health Insurance Reform in Politics and Legislation

So far, one of the sharpest points of debate when it comes to health care and health insurance reform is whether we should have a public-private health insurance plan to compete with other plans.

Well, it’s a point of debate, but ultimately likely to happen with advocating lawmakers enjoying a heavy majority in Congress and an ally in the White House.

But would a public-private plan mean for the federal budget?

The Congressional Budget Office recently released a report explaining how significant reforms might affect the government’s pocketbook, reported the Washington Post.

In general, the CBO looks at health reform in two ways: the government would have strong control over the health insurance industry, or the private system maintains its independence with an added public option to compete.

If the government did keep a tight grip on the industry, then it would be considered by the CBO as a government program, one that belongs in the federal budget, writes CBO Director Douglas Elmendorf.

On the other hand, says Elmendorf, a mostly privately run health insurance system would not belong in the budget.

And as long as people had a wide range of choices — and the government wasn’t in charge of collecting premiums for the public-private option — then a mandate for all Americans to purchase health insurance couldn’t be considered a form of federal taxation.

Also, the collection of premiums wouldn’t be considered federal revenue in a market dominated by private insurance.

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