New CAHC Study Shows Collins-Nelson Proposal Could Reverse Forecasted Premium Hikes Under Individual Mandate Repeal

WASHINGTON, DC (December 20, 2017): A new study from the Council for Affordable Health Coverage (CAHC) – a coalition of employers, insurers, life science companies, PBMs, brokers, agents, patient groups, and physician organizations – found that implementation of the latest bipartisan reinsurance proposal from Senators Susan Collins (R-ME) and Bill Nelson (D-FL) would reduce average premiums by 9-11%.

This reduction in premiums would effectively reverse the Congressional Budget Office's forecasted 10% premium hike associated with repealing the Affordable Care Act's individual mandate as part of tax reform. 

The study was first reported exclusively by the Washington Examiner and prepared by CAHC Chief Economist Jeff Lemieux, a former senior analyst at the Congressional Budget Office. 

CAHC President Joel White released the following statement: 

“For all the handwringing over Republicans’ vote to repeal the individual mandate, our projections show that the impact on premiums could be effectively reversed when coupled with the latest Collins-Nelson reinsurance proposal,” said CAHC President Joel White. “CAHC has long said that the individual mandate has not been as effective as originally promised but, if lawmakers intend to repeal it, they must follow that with quick action to stave off premium increases and stabilize markets. Our modeling shows that the Collins-Nelson plan could do precisely that. Indeed, these numbers suggest that even with the most conservative assumptions about passthrough funding, states could still see a net premium decrease of four percent in 2020.”  

White concluded, “Republican leaders have long heralded tax reform as a ‘Christmas present’ to middle-class families, but measures to stabilize markets and prevent premium hikes would be a welcome, and needed, gift for consumers this season as well. CAHC urges policymakers to take quick action on reinsurance and to guarantee funding in all states through a federal fallback mechanism." 

Read the full CAHC study HERE


The Council for Affordable Health Coverage (CAHC) is a broad-based alliance with a primary focus: bringing down the cost of health care for all Americans. CAHC promotes policies that lower health costs through increased competition, informed consumers and more choices to help promote access to affordable coverage. Learn more at