Health subsidies to reach $1T — 7 key findings

On March 24, the Congressional Budget Office issued a report on subsidized health coverage’s cost, according to Reuters.

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Here are seven findings from the report:

1. Taxpayers will pay more than $660 billion in 2016 for subsidized health insurance for people under 65, most of whom obtained coverage through their employer.

2. The 2016 tax bill is equivalent to 3.6 percent of gross domestic product.

3. Healthcare subsidies’ cost is projected to grow, on average, 5.4 percent each year over the next 10 years, reaching $1.1 trillion.

4. The CBO estimates nearly 40 percent of this year’s subsidies for health insurance, or $268 billion, reflects tax breaks for small employers and the exclusion for employer-based health insurance plans that cover 155 million employees under 65 years of age.

5. The CBO expects another $279 billion in subsidies this year for Medicaid and the federal Children’s Health Insurance Program.

6. Over the next decade, the CBO estimates the Affordable Care Act’s high enrollment for people eligible for Medicare will increase the cost of ACA insurance coverage provisions nearly $136 billion.

7. The ACA’s insurance coverage provisions through 2016 will cost $157 billion less than the CBO estimated in 2010.

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