CBO Issues Estimate of Statutory Pay-As-You-Go Effects of Helping Medicaid Offer Maternity Services Act

WASHINGTON, Sept. 30 -- The Congressional Budget Office issued the following cost estimate for the statutory pay-as-you-go effects of the Helping Medicaid Offer Maternity Services Act (H.R. 4996):

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 procedures are shown here.

Estimates relative to CBO's March 2020 baseline. The estimate of the option to extend additional coverage to postpartum women accounts for projected changes in enrollment from lower labor force participation (see Congressional Budget Office, Interim Economic Projections for

2020 and 2021, May 19, 2020, www.cbo.gov/publication/56351); estimated budget authority equals outlays; components may not sum to totals because of rounding.

H.R. 4996 would allow states the option to extend postpartum coverage under Medicaid and the Children's Health Insurance Program to one full year after the birth of a child.

The bill also would remove the cap on rebates for outpatient drugs covered by Medicaid. The cap is currently set at 100 percent of the average manufacturer price.

In addition, the bill would increase funding available for use by the Secretary of Health and Human Services under the Medicaid Improvement Fund.

Enacting the bill also would increase off-budget revenues by $649 million.

Table omitted: https://www.cbo.gov/system/files/2020-09/hr4996paygo.pdf