Tags: Healthcare Reform | obamacare | costs | cbo | less | projected

CBO: Obamacare Costs Will Be Less Than Projected

By    |   Monday, 09 March 2015 07:09 PM

Obamacare's costs will be about 29 percent less than projected in 2010, according to a report Monday from the Congressional Budget Office.

Costs associated with President Barack Obama's signature healthcare law will be about $506 billion over the next five years, according to the report. The cost dips $142 billion, or 11 percent, between 2016 and 2025.

The primary reason cited for the decrease is the fact that health care premiums are not rising as quickly as expected, decreasing the cost of subsidies. Also, fewer people have signed up for Medicare and subsidized insurance, because more people already had insurance than had been thought, The Washington Post reports.

Other reasons included the Supreme Court's 2012 decision allowing states to decide whether they would expand Medicaid and the slow growth in spending on health care.

But health care spending is expected to increase, CNN Money reported. Private health insurance per person increased only 1.8 percent between 2006 and 2013, but is expected to hit 5.6 percent between 2016 and 2025.

Meanwhile, health care policy analyst Betsey McCaughey warned that the CBO report also predicts rising costs in the short term for those who are signed up through exchanges.

McCaughey, chairwoman of the Committee to Reduce Infectious Deaths and former lieutenant governor of New York, told Fox News Channel's "Your World with Neil Cavuto" on Monday that a temporary subsidy for insurers will expire after 2016.

"It said to insurers, price your plans lower than what you actually need to cover your costs and at the end of the year the government will come around with a bag of taxpayer money and make you whole for your losses," McCaughey said. "That expires, conveniently, just after Obama leaves office."

Also, she said, insurers keep costs lower by paying doctors and hospitals so little that only a few of them accept Obamacare plans.

"But the CBO says consumers are going to rebel and insist on more choice, and that's going to push up the cost," McCaughey said.

"Everybody who signs up for an Obamacare plan will see their premiums go up, but taxpayers who shoulder the cost of about three quarters of these plans paid for by taxpayers, they're going to shoulder the cost, too," she said.

The cost of subsidies will almost triple by 2020, and the cost of Medicaid expansion double in the same time period, while 30 million remain uninsured, McCaughey told Fox News.

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Obamacare's costs will be about 29 percent less than projected in 2010, according to a report Monday from the Congressional Budget Office.
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Monday, 09 March 2015 07:09 PM
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