CBO: Supreme Court Decision to Make Medicaid Expansion Optional Saves $84B

In light of the Supreme Court's decision barring HHS from cutting funding from states that choose to opt out of Medicaid expansion, the Congressional Budget Office has revised the budget baseline for the Patient Protection and Affordable Care Act to reflect an $84 billion reduction from a March 2012 estimate.

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

© Copyright ASC COMMUNICATIONS 2020. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.

 

Featured Content

Featured Webinars

Featured Whitepapers