Cutting Obamacare Subsidies Would Benefit Poor, Says CBO | Economics21

The unsurprising part is CBO’s expectation that if CSR subsidies are withdrawn, sponsors of silver plans will hike premiums substantially.

The surprising part is that CBO found that not only would this generally not hurt low-income participants, it would on balance benefit them – especially older Americans below 400 percent of the poverty line.  The primary losers, under CBO’s analysis, would be federal taxpayers.  Add it all up, and terminating the CSR subsidies would paradoxically lead to a substantial increase in progressive income redistribution.

Source: Cutting Obamacare Subsidies Would Benefit Poor, Says CBO | Economics21

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