CBO Comes Up With Health Proposal Analysis Method

Providing an employer health coverage subsidy also would reduce the number of uninsured residents, but at a cost of about $8,900 per newly insured individual, because most of the money would end up subsidizing coverage for people who already have coverage, the CBO analysts predict.

Implementing a proposal by President Bush to replace the current group health deduction system with a $7,500 deduction for individual coverage and a $15,000 deduction for family coverage would reduce the number of uninsured residents by 6.7 million at a cost of about $2,500 per newly insured individual, the analysts estimate.

A copy of the CBO analysis is on the Web