New estimates predict the insurance coverage provisions of the PPACA will have a net cost of $1,168 billion over the next eleven years.
The savings come from the fact the reductions in spending from lower Medicaid enrollment are expected to more than offset the increase in costs from greater participation in newly established exchanges, since a majority of the people eligible for Medicaid expansion do not make enough money to qualify for health exchange subsidies.
Specifically, the CBO predicts federal spending for Medicaid and the Children’s Health Insurance Program will be $289 billion less than expected from 2012 through 2022, while the estimated cost of tax credits and subsidies for the purchase of health insurance through exchanges has risen by $210 billion. Other changes account for the remaining $5 billion difference.
More Articles Related to the PPACA:
Hospital Groups, HHS Meet to Discuss Medicaid Expansion Issues
GAO: PPACA Could Extend Coverage to 5.3M Children, But Leave 1.7M Uncovered
Healthcare Reform’s Cost Precipice: Q&A With Dr. David Gruber of Alvarez & Marsal
