Obamacare’s most expensive provisions will cost about $9 billion less than expected, according to the latest estimates from the Congressional Budget Office.
CBO said the law’s coverage provisions — a set of policies that includes the law’s insurance subsidies and Medicaid expansion — will cost the federal government about $1.5 trillion over the next decade.
The latest analysis doesn’t cover the whole law, and CBO reiterated that it expects the law to reduce the federal deficit. Tuesday’s analysis was confined to the law’s coverage provisions, and didn’t include Medicare savings or new taxes on drug and medical-device companies, which offset the costs of expanding coverage.
The $1.5 trillion spending estimate is about $9 billion lower than estimates from last year, due in part to CBO’s estimate that roughly 1 million fewer people will obtain health insurance on the exchanges and 1 million fewer people will sign up for Medicaid and the Children’s Health Insurance Plan, due to the rocky rollout of HealthCare.gov.
Among CBO’s other justifications for lowering the cost are that insurance companies priced exchange premiums lower than the agency had anticipated, and that the agency now expects to receive more from insurance companies than it will pay out in a program designed to protect insurers who get a particularly unhealthy—and expensive—mix of enrollees.
CBO estimates that 24-25 million Americans will get health insurance through the Affordable Care Act’s exchanges and 12-13 million Americans will gain Medicaid or CHIP coverage. But some Americans—roughly 6-7 million—will lose their employer sponsored coverage, according to the projections, as some employers and employees choose instead to seek health insurance on the exchanges.
What We're Following See More »
"A lawyer representing Chris Gard and Connie Yates told the High Court 'time had run out' for the baby. Mr. Gard said it meant his 'sweet, gorgeous, innocent little boy' will not reach his first birthday on 4 August. 'To let our beautiful little Charlie go' is 'the hardest thing we'll ever have to do,' his mother said. Charlie's parents said they made the decision because a US doctor had told them it was now too late to give Charlie nucleoside therapy.
"Eleven states have sued the Environmental Protection Agency over its June decision to delay implementation of a chemical safety rule" until 2019. "The state attorneys general, led by New York’s Eric Schneiderman (D), argue the rule is important for 'protecting our workers, first-responders and communities from chemical accidents' and should be allowed to take affect as planned by the Obama administration’s EPA.
"House Freedom Caucus Chairman Mark Meadows (R-N.C.) on Monday said that funding for President Trump's controversial border wall is unlikely to cause a government shutdown. 'The odds of a government shutdown are very minimal when it comes to that,' the conservative lawmaker said at an event in Washington, D.C. 'I do think the funding of the border wall will happen,' he added. Appropriators have set aside $1.6 billion to fund new wall and fencing sections on parts of the U.S.-Mexico border covering a few dozen miles."