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the congress of the united statesPub. No. 2719CBO CBO’s Health Insurance Simulation Model: A Technical Description

By A Technical Description


Unless otherwise noted, all years are calendar years. Numbers in the text and tables may not sum to totals because of rounding. Preface Over the past several years, federal and state policymakers have considered a variety of proposals to increase health insurance coverage among the nation’s residents. Estimating the effects of those proposals on the size of the uninsured population, the cost of health insurance premiums, and the federal budget is a significant challenge. This background paper describes a model the Congressional Budget Office (CBO) developed to simulate and analyze an array of policy options involving health insurance coverage. It describes the model’s design, basic methodology, and fundamental assumptions. To illustrate the model’s use, the paper reports estimates for two scenarios in which policy regarding health insurance coverage would differ from current law. In keeping with CBO’s mandate to provide objective, impartial analysis, the paper makes no recommendations. David Auerbach and Stuart Hagen of CBO’s Health and Human Resources Division prepared this paper under the supervision of James Baumgardner and Bruce Vavrichek. Carol Frost programmed and currently maintains the model. Tom Bradley and Chapin White provided significant assistance throughout the model’s development. Alshadye Yemane helped to check facts and to validate the model

Year: 2007
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