CBO: Delaying Individual Mandate Would Save $35 Billion

Delaying Obamacare's individual mandate for one year would reduce the federal deficit by at least $35 billion over 10 years, according to a new report from the Congressional Budget Office.

The CBO report was produced in response to House passage of a Republican-sponsored bill to delay the Affordable Care Act requirement that all Americans have insurance by Jan. 1. President Barack Obama has threatened to veto the measure, but the Senate is not expected to even consider it.

If the bill ever were signed into law, the CBO said, it would save $17 billion in Medicaid spending and $9 billion in subsidies and tax credits that would have been paid out to low-income people to help offset insurance costs, The Hill reported Tuesday.

A delay also would increase federal revenue because fewer people would contribute part of their salary to health insurance.

"That change would lead to a larger share of total compensation taking the form of taxable wages and salaries and a smaller share taking the form of nontaxable health benefits," the report said.

But, the CBO also warned, a one-year delay in the individual mandate likely would result in higher insurance premiums and would increase the number of uninsured Americans by 11 million, raising the total of people without health coverage to 55 million.