Wednesday, October 31, 2012

ACA Cost Estimates: Rising or Falling?

John Goodman has a misleading post over at his blog, claiming that the Cost for ObamaCare Soar:
When the [Affordable Care Act] passed in June 2010, the Congressional Budget Office projected the budget cost between fiscal 2012 and fiscal 2019 to be $462 billion. By June 2012, the cost for these same years had jumped to $574 billion, an increase of nearly 25 percent.
This is true, but it's very misleading.  CBO's estimates for the ACA's insurance subsidies have indeed increased, but Goodman and the American Action Forum fail to note that the CBO estimates that the overall cost of the ACA's health coverage expansions has dropped.  According to the CBO report, "the net costs of the coverage provisions of the ACA will be $84 billion less over the 2012-20122 period than they estimated in March 2012."

The entire CBO report is here.  

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