Obamacare $100 Billion Cheaper Than Expected
Posted at 4:03 p.m. on April 14, 2014
“Republicans and their allies keep saying the Affordable Care Act will bankrupt the taxpaying public. Now there’s one more reason to think they are wrong,” Jonathan Cohn reports.
“It comes from the Washington’s official accountant, the Congressional Budget Office, which on Monday released a newly updated projection on how the Affordable Care Act will affect the deficit and insurance coverage. In February, the last time CBO addressed these issues comprehensively, it predicted that the net cost of the law’s coverage provisions would be about $1.4 trillion over ten years. Now, CBO says, it’s likely to be about $1.3 trillion, or $100 billion less.”
“It’s actually the latest in a series of revisions, each one suggesting the law would cost less money than the previous projection had suggested… And why this latest change? It doesn’t appear to be because the law will reach fewer people. CBO now expects slightly more people to end up with health insurance, at least over the long run. The CBO’s primary explanation for lower costs is that health insurance premiums on the new exchanges—what the administration calls ‘marketplaces’—are lower than CBO had originally expected they would be.”