CBO: Obamacare Will Cost Hundreds of Billions of Dollars Less Than Projected

Rick Ungar at Forbes brings the good news:

Amidst the dark skies of the Healthcare.gov launch, some daylight may finally be emerging with respect to one of the critical goals of the Affordable Care Act—bending the cost curve of America’s expensive healthcare system.

According to a New York Times report out Tuesday, the Congressional Budget Office has quietly removed hundreds of billions of dollars from the projected costs of Obamacare, primarily the result of an anticipated decrease in the federal government’s contribution to the Medicaid expansion program along with the projected cost of the subsidy payments to those buying private insurance policies on the healthcare exchanges.

Why the good news?

The more favorable projections are the direct result of the slowing trend in the growth of healthcare spending over the past five years leading to a slowdown in rising costs. While, ten years ago, per-capita spending on healthcare had been growing by an average annual rate of 5 percent, that number was dramatically cut to 1.8 percent during the 2007-2010 period and reduced even further to 1.3 percent in the years following 2010.

But generational theft and debt and Greece!! IEEEEEE!!!!

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  • Ipecac

    –primarily the result of an anticipated decrease in the federal government’s contribution to the Medicaid expansion program

    Does this mean that costs have been reduced because of stupid Red states rejecting the expansion?

  • http://drangedinaz.wordpress.com/ IrishGrrrl

    “generational theft and debt and Greece!! IEEEEEE!!!!”

    You should thrown in “hyperinflation”, Krugman’s pet peeve

  • D_C_Wilson

    Darrell Issa (R-Insurance Fraud) will immediately convene hearings to determine why the Obama administration oversold the projected costs of Obamacare.

  • trgahan

    Can’t help but think the CBO is at the top of a list of agencies to be “purged” and politicized during the next Republican presidency al la the Justice Department, FEMA, and Supreme Court under Bush.

    I have always been amazed that since Republicans need to create a false reality to sell their ideas that they haven’t done something to prevent this agency from doing basic math. Especially since that basic math continues to undermine the Republican platform and talking points.

  • GrafZeppelin127

    You watch; the paracosm-dwellers will insist that the CBO has projected that Obamacare will cost massively more than originally anticipated. They’ve done that before; the last CBO projected a net reduction in cost, but it was based on an increase in expenditures and a larger increase in savings (i.e., (X+Y) – (X+Y+Z)), so they took the former, ignored the latter, and claimed that “Obamacare is going to cost, like, TWICE what it was supposed to cost!!!”