Expanded health insurance coverage under the Affordable Care Act, President Barack Obama’s signature legislative legacy, will cost the government more, according to an official study released Thursday. Still, on balance, the measure more than pays for itself.
The nonpartisan Congressional Budget Office said the health care law will cost $1.34 trillion over the coming decade, $136 billion more than the CBO predicted a year ago. That 11 percent hike is mostly caused by higher-than-expected enrollment in the expanded Medicaid program established under the law.
All told, 22 million more people will have health care coverage this year than if the law had never been enacted, CBO said. The measure’s coverage provisions are expected to cost $110 billion this year.
The number of uninsured people this year is anticipated at 27 million.
About 90 percent of the U.S. population will have coverage, a percentage that is expected to remain stable into the future.
The study also projected a slight decline in employment-based coverage, although it will remain by far the most common kind among working-age people and their families.
Employers now cover some 155 million people, about 57 percent of those under 65. That’s expected to decline to 152 million people in 2019. Ten years from now, employers will be covering about 54 percent of those under 65.
CBO said part of the shrinkage is attributable to the health care law: some workers may qualify for Medicaid, which is virtually free to them, and certain employers may decide not to offer coverage because a government-subsidized alternative is available. (Larger employers would face fines if they take that route.)
But the agency also noted that employer coverage had been declining due to rising medical costs well before the health care law was passed, and that trend continues.
The analysis underscores the view that the health care law is driving the nation’s gains in insurance coverage, which raises political risks for Republicans who would repeal it.
Taking seniors covered by Medicare out of the equation, the government devotes $660 billion to subsidizing health care for people under 65, including the Medicaid program for the poor and disabled and tax benefits for employer-provided health insurance.
The budget office did not provide a new estimate of Obamacare’s overall impact on the federal deficit, other than to say that it is, on net, expected to reduce the deficit. The law included a roster of tax increases and cuts in Medicare payments to hospitals and other providers to pay for coverage expansion.
CBO is a congressional agency that does budget forecasts and cost estimates of legislation.
The Associated Press contributed to this article.
I’m now live in Minnesota, and I’ve lived in N Dakota. And I’ve had the chance to see a real Canadian’s paycheck. Over 50% goes to taxes. The free health care isn’t free. Get ready. This is going to happen to all American workers. Do you still hate Cruz?!!
Yes, without a doubt.
Are we talking BARACKY THE STUPID HEALTH CARE aka OBHOZOCARE CISTS going THROUGH THE ROOF which he LIED about resulting in a 25% reduction??? and what has CRUZ got to do with it?? Other than Wiping it off the BI_OOKS in Short time when he gets Elected??
Why would anyone be surprised their healthcare costs are up 50%, coverage is much less, quality of care has gone down, fewer Americans have insurance now than when it was introduced. For a liberal democrat this is a successful rip off, most are even worse. Why would anybody want to be a democrat, soon it’ll be required they have dumb ass stamped on their foreheads.
This healthcare had nothing to do with reform it was all about mandating health insurance so that the healthcare union got back the money they paid Obama for his election campaign.
What the Horn fails to report is that young relatively healthy Americans are forced to buy Obamacare when they are lower middle class wage earners. They can barely afford this. All that money was previously spent in purchases, etc. so the tax revenues are lost. They are forced to by annual increases in the mandatory fines of $1000 or more. That is why enrollment is up slightly. The most they can barely afford is the Catastrophic Coverage plan only. Their finances are so depleted, they cant afford to go to the doctor for even preventative care like annual physicals. When they feel something is very wrong, they just dont go, because they cant afford the high deductibles and co-pays. The other reason there are more people enrolled is the Feds are subsidizing low income people to be able to afford it. This further taxes the middle class to pay for these subsidies. This is a huge middle class rip-off that will kill the economy. Has anyone noticed how low interest rates have stayed, for how long? This is the best indicator that we are far from a healthy economy. When we are a healthy economy, interest rates are in the 4-5% range. They have been at 0% (money loaned by the feds) and just recently only raised to .25% to test the waters, for many years since this recession began in 2007. Obamacare must stop before it stops us!
SO when anyone goes in a VOTING BOOT….REMEMBER THAT THE PROGRESSIVE POH
P arty
O f
H YPOCRITES
LIED to you when they ALONE passed ODUMBOCARE and STUCKED all of US with this DISASTER…….and SHIL-LIAR-RY will probably LIE even More than BARACKY the STUPID LYING IMAM
When you give something away the number of participants are going to increase. That’s what is happening as our government showers people with Medicaid. The taxpayers and future generations will get stuck with the bill.
I’m now paying more money for heath insurance than putting away for retirement. My health insurance is killing me
Cant believe we are so stupid. Medicaid
Is paid by the taxpayer and people who pay
For their insurance. Obamacare is not
Free except for the people who get all
Kinds of welfare. Even the boston bombers
Who killed americans.. Were getting welfare
And living in anice large home. For forty yrs i paid into medicare all the while paying for
My own insurance. There are loosers out there who have never worked and are getting all the benefits. Ps I’m still paying for
Medicare.don’t believe that the only thing
You cant stop are death and taxes add to it medicare.
with a republican majority -“WHY HASN’T ANYTHING TRANSPIRED ? The big gusto was when we control the congress, we’ll get things done and many items changed, just such as this OBAMAMESSCARE’ I blame our house and senate majority for sitting on their hands instead of voting to change or modify such radical laws as the PELOSICARE – ala’ OBUMACARE everything is just sitting there – no action !!
Now an outsider threatens to change it all and is not beholding to any of the carpetbagging politicians ! WOW” A breathe of fresh air
Congress could change the tax laws to favor business more so that companies come back to America, create jobs, which create more tax revenue and there is the real formula for it all Only one candidate professes this formula and people are angry and listening to him ! –
When I said do you still hate Cruz I’m reminding you that he always opposed this ObamaCare. He even opposed so strongly that he incurred the wrath of the Republican Party leaders, because they wanted to go along to get along with Obama. And recently Mr. Trump accused Mr. Cruz of not winning anything in the US Senate. Remember that Mr. Cruz’ biggest enemies were the Republican Party bosses who hated his opposition to Obama. And now many voters who claim to hate ‘the establishment’ are opposing Mr. Cruz as well. Good grief!!