CBO Report –Millions Expected to lose Employer-Sponsored Health Plans by 2026
A new report released by the Congressional Budget Office and the Joint Commission on Taxation projects that millions less people under the age of 65 will be covered by employer-sponsored health plans by 2026 than they are today. The report also projects that more people will become insured through Medicaid.
As of 2016, the CBO and JCT estimate that 155 million are covered by insurance provided through an employer. This accounts for approximately 57% of those under the age of 65. That figure is expected to drop to 54% by 2026.
According to the report, by 2026 it is estimated “that 9 million fewer people would have employment base coverage under current law than would have had it if the ACA had not been enacted.”
In addition, the report indicates that employers and employees will incur more taxes because the excise tax on High-Premium Insurance Plans will drive them to choose less robust health plans with lower premiums. This will cause employers and workers to lose important non-taxable health benefit tax savings which will result in higher taxable income and less take-home pay. This change also means increased out -of -pocket expenses due to higher co-payments and deductibles.
To view the report in its entirety, please visit https://www.cbo.gov/sites/default/files/114th-congress-2015-2016/reports/51385-HealthInsuranceBaseline.pdf