A health insurance proposal from the Biden White House would result in billions in new federal spending.
Democrats’ plan to extend a “temporary” increase in Obamacare subsidies. The subsidies are set to expire at the end of 2025.
According to the Congressional Budget Office (CBO), if the “temporary” subsidies became permanent, that would increase the deficit by as much as $335 billion over the 10 years. On top of that, there would be an additional $48 billion in interest costs.
Also, the CBO discovered that extending the subsidies under the proposal would increase the number of insured Americans by 3.4 million, while 3.5 million people would lose employer-based coverage.
David Balat, CEO of Healthcare Finance Specialists, called the Biden-promoted proposal "tone deaf."
"It benefits the insurance companies and it continues to hamper the ability for patients to get the health care they need," said Balat.
The policy would essentially bring billions in spending to subsidize people who already had health insurance.
"The deductibles have increased to a level of seven and eight thousand dollars," Balat said. "People are afraid to go to the doctor."
"Having an insurance card in their pocket is not giving them the comfort and peace of mind that they want and deserve," Balat added.