Congressional Budget Office: Obamacare costs $100 billion less than projected, still reduces budget deficits on net | Arkansas Blog

Monday, April 14, 2014

Congressional Budget Office: Obamacare costs $100 billion less than projected, still reduces budget deficits on net

Posted By on Mon, Apr 14, 2014 at 2:09 PM

aca_projection.png

The new report 
from the non-partisan Congressional Budget Office (CBO) found that the coverage expansion under the Affordable Care Act has a lower price tag than what the CBO projected in February, to the tune of $104 billion over the ten-year period 2015–2024. For 2014, the cost is now projected to be $5 billion less than what was projected in February. 

This is good news — and keep in mind these are the gross costs of expanding coverage. The CBO points out that "many other provisions, on net, are projected to reduce budget deficits." Based on the most recent comprehensive estimates, "the ACA's overall effect would be to reduce federal deficits."

The updated lower price tag comes despite the fact that the CBO projects an increase in the number of people getting insurance through the new marketplaces created by the law, up to 25 million from 24 million in the last projection. The difference is that premiums on the marketplaces came in lower than predicted, so the federal government has less to pay out to help folks who qualify for income-based subsidies purchase insurance on the marketplaces. The CBO projects that trend — premiums lower than initial projections — to continue in future years. 

The CBO has kept its projection that 6 million people will gain insurance through the marketplaces in 2014, though 7.5 million people have signed up. The difference is that the CBO projects some people who have coverage now won't necessarily keep it all year, for example because they get a job that offers insurance. Some also may never pay their first month's premium and never get covered even though they signed up. People will move on to the marketplace throughout the year too, for example if they lose a job that offered insurance. The CBO projects that the net effect will be about 6 million people covered by the marketplaces at any given time. 

Here's the big picture on coverage gains, counting not just the marketplaces but Medicaid expansion and other features of the law that impact coverage (yes, this includes plan cancellations that happened because of the ACA's requirements): 

12 million more nonelderly people will have health insurance in 2014 than would have had it in the absence of the ACA. ... 19 million more people will be insured in 2015, 25 million more will be insured in 2016, and 26 million more will be insured each year from 2017 through 2024 than would have been the case without the ACA. 

In short, the latest estimates from the CBO suggest that Obamacare will put a major dent in the uninsurance rate in this country, and will do so at a lower cost than previously projected. Projections like these should always be treated with caution, but the early returns indicate that the "TRAIN WRECK!!!" predictions were wrong. 



Tags: , , , , ,


Favorite

Comments (4)

Showing 1-4 of 4

Add a comment

 
Subscribe to this thread:
Showing 1-4 of 4

Add a comment

More by David Ramsey

Readers also liked…

  • Campus gun bill clears committee

    The so-called compromise amendment that will allow anyone 25 or older with a training certificate carry a concealed weapon on public college campuses was approved in a Senate committee this afternoon.
    • Feb 21, 2017
  • Free Zinn book for Arkansas teachers

    Arkansas teachers! Get your free Howard Zinn book here! Whether Kim Hendren likes it or not.
    • Mar 3, 2017
  • Hospitality, restaurant groups oppose bathroom bill

    Add the restaurant and hospitality association to those opposed to Sen. Linda Collins-Smith's bill to keep transgender people out of public restrooms that match their gender identity.
    • Mar 16, 2017

Slideshows

Most Viewed

  • The New Yorker profiles Sarah Huckabee Sanders

    Paige Williams, profiling Sarah Huckabee Sanders in the current New Yorker, describes the pugilistic Sanders as "Trump's battering ram." Bottom line: As defensive as ever.
  • Government transformation: An idea from the Insurance commissioner

    I have been making information requests around state to government to get an inkling of what Gov. Asa Hutchinson intends to announce about reorganizing state government in the name of efficiency. This morning, an idea on that subject from Insurance Commissioner Allen Kerr, unearthed by an FOI request.
  • State recommends denial of new permit for C and H Hog Farm

    The Arkansas Department of Environmental Quality has recommended denial of a new permit for discharge of waste by the C and H Hog Farm in Newton County.
  • More reorganization news

    Some further news on the government reorganization front includes a memo sent to agencies by the governor's chief of staff, Alison Williams, last week.
  • Unsealed court documents include kickback accusation against former state Rep. Tim Summers; Summers says "Jon Woods is a proven liar"

    The more than 500 pages of court filings recently unsealed by Federal Judge Timothy Brooks in the federal corruption case against former state Sen. Jon Woods include notes from a 2017 meeting between former state Rep. Micah Neal and federal investigators. According to these notes, Neal described what appears to be an accusation by Woods that state. Rep. Tim Summers, then a lobbyist, took kickbacks in exchange for helping to get GIF money for an affiliate of Preferred Family Healthcare where Summers worked on staff.

Most Recent Comments

 

© 2018 Arkansas Times | 201 East Markham, Suite 200, Little Rock, AR 72201
Powered by Foundation