Much of the focus around the Obamacare repeal debate has centered on what would happen to people who buy insurance on their own, but about half of Americans are insured through their jobs—a situation that has shielded them from many of the concerns around Obamacare and its repeal.
But by 2020, about 2 million fewer people would get insurance through work if the GOP’s proposed Obamacare replacement bill, the American Health Care Act, passes, according to a scorecard report released today by the Congressional Budget Office, a nonpartisan agency that tracks the financial impact of legislation.
The CBO projects this will happen because the AHCA would repeal Obamacare’s individual mandate, so some people might not sign up for their employer’s health plan, with no threat of being fined later. But also, the GOP bill might induce more employers to stop offering health insurance.
That’s because the bill would also repeal the employer mandate, which requires businesses above a certain size to offer health coverage to their workers. The AHCA would also offer tax credits to buy insurance to people making up to $75,000 a year, so more upper-middle-class workers could shop for insurance for themselves than under the current system, in which the cutoff for subsidies is around $48,000.