CBO Issues Cost Estimate for CHAMPION Act
H.R. 3922
CHAMPION Act of 2017
As ordered reported by the
SUMMARY
H.R. 3922 would extend funding for
Enacting H.R. 3922 would affect direct spending and revenues; therefore, pay-as-you-go procedures apply.
CBO estimates that enacting H.R. 3922 would not increase net direct spending or on-budget deficits in one or more of the four consecutive 10-year periods beginning in 2028.
H.R. 3922 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act (UMRA).
ESTIMATED COST TO THE FEDERAL GOVERNMENT
The estimated budgetary effect of H.R. 3922 is shown in the following table. The costs of this legislation fall within budget functions 550 (health) and 500 (education, training, employment, and social services).
By Fiscal Year, in Millions of Dollars
2018 2019 2020 2021 2022 2023 2024 2025 2026 20272018-2022 2018-2027
INCREASES OR DECREASES (-) IN DIRECT SPENDING
Sec. 101 -
Centers and the
Estimated Outlays 1,124 2,733 2,780 1,181 16 0 0 0 0 0 7,833 7,833
Sec. 102 - Special Diabetes
Program
Budget Authority 263 300 0 0 0 0 0 0 0 0 563 563
Estimated Outlays 76 233 198 42 9 4 0 0 0 0 558 563
Sec. 103 - Teaching Health
Centers GME
Budget Authority 112 127 0 0 0 0 0 0 0 0 238 238
Estimated Outlays 45 92 72 29 0 0 0 0 0 0 238 238
Sec. 104 - Family-to-Family
Budget Authority 6 6 0 0 0 0 0 0 0 0 12 12
Estimated Outlays 3 5 3 1 0 0 0 0 0 0 12 12
Sec. 105 - Youth Empowerment
Program and PREP
Budget Authority 150 150 0 0 0 0 0 0 0 0 300 300
Estimated Outlays 5 69 122 74 18 0 0 0 0 0 288 288
Sec. 201 - QHP Grace Period
Requirements
Estimated Outlays -262 -387 -394 -409 -424 -431 -447 -458 -463 -478 -1,876 -4,153
Sec. 202 -
Budget Authority 0 -400 -500 -500 -1,000 -500 -1,200 -1,250 -1,000 0 -2,400 -6,350
Estimated Outlays 0 -60 -193 -367 -548 -642 -779 -902 -1,045 -968 -1,168 -5,504
Total Changes
Estimated Outlays 991 2,685 2,588 551 -929 -1,069 -1,226 -1,360 -1,508 -1,446 5,885 -723
INCREASES IN REVENUES
Sec. 201 - QHP Grace Period
Requirements 34 65 68 71 74 77 79 80 83 86 313 717
NET INCREASE OR DECREASE (-) IN THE DEFICIT FROM
INCREASES OR DECREASES (-) IN DIRECT SPENDING AND REVENUES
Impact on Deficit 957 2,620 2,520 480 -1,003 -1,146 -1,305 -1,440 -1,591 -1,532 5,572 -1,440
Notes: Components may not add to totals because of rounding; GME = Graduate Medical
Education; PREP = Personal Responsibility Education
Program; QHP = Qualified Health Plan.
BASIS OF ESTIMATE
For this estimate, CBO assumes that H.R. 3922 will be enacted near the start of calendar year 2018. Estimated outlays are based on historical spending patterns for the affected programs.
Extension of Expiring Provisions
H.R. 3922 would extend several public health provisions that would otherwise expire under current law. In total, CBO estimates that enacting those extensions would increase federal spending by about
*
*
*
*
*
*
*
Qualified Health Plan Grace Period Requirements
Under current law, people who enroll in subsidized health insurance purchased through a marketplace established under the Affordable Care Act (ACA) and pay the premium for at least their first month of coverage are granted a grace period of three months if they miss a subsequent payment. If they pay their premiums in full during that grace period, their coverage continues normally. If, at the end of three months, they have not made their premium payments, their coverage is terminated retroactively to the end of the first month of their grace period.
H.R. 3922 would shorten the grace period to one month unless a state sets a different one. CBO and the staff of the
The legislation would reduce funding available to the
PAY-AS-YOU-GO CONSIDERATIONS
The Statutory Pay-As-You-Go Act of 2010 establishes budget-reporting and enforcement procedures for legislation affecting direct spending or revenues. The net changes in outlays and revenues that are subject to those pay-as-you-go procedures are shown in the following table.
CBO Estimate of Pay-As-You-Go Effects for H.R. 3922, as ordered reported by the
By Fiscal Year, in Millions of Dollars
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2018-2022 2018-2027
NET INCREASE OR DECREASE (-) IN THE DEFICIT
Statutory Pay-As-You-Go Impact 957 2,620 2,520 480 -1,003 -1,146 -1,305 -1,440 -1,591 -1,532 5,572 -1,440
Memorandum:
Changes in Outlays 991 2,685 2,588 551 -929 -1,069 -1,226 -1,360 -1,508 -1,446 5,885 -723
Changes in Revenues 34 65 68 71 74 77 79 80 83 86 313 717
INCREASE IN LONG-TERM DIRECT SPENDING AND DEFICITS
CBO estimates that enacting the legislation would not increase net direct spending or on-budget deficits in any of the four consecutive 10-year periods beginning in 2028.
INTERGOVERNMENTAL AND PRIVATE-SECTOR IMPACT
H.R. 3922 contains no intergovernmental or private-sector mandates as defined in UMRA.
ESTIMATE PREPARED BY:
Federal Costs:
ESTIMATE APPROVED BY:
Deputy Assistant Director for Budget Analysis
Don’t Resuscitate ObamaCare, Warns AAPS
Best’s Briefing: Cost-Sharing Reduction Subsidy Payments Cancelled Two Weeks Prior to Open Enrollment—What’s Next for Health Insurers?
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News