Posts Tagged COngressional Budget office
“Yes – Fox News actually just admitted that Obamacare would reduce the deficit. Republicans have continually repeated the lie that Obamacare increases the deficit; it doesn’t.”
From Fox News’ September 6 2012 Democratic National Convention coverage:
Full video HERE.
This chart shows both the increase in revenues and costs and the line in the middle shows the impact on the deficit by year. If the line is below zero then it reduces the deficit and if the line is above zero – it increases the deficit. You can see…the estimate is that it reduces the deficit: Source
The new estimates reflect a couple of factors. The Congressional Budget Office lists them:
– An increase of $168 billion in projected outlays for Medicaid and CHIP;
– A decrease of $97 billion in projected costs for exchange subsidies and related spending;
– A decrease of $20 billion in the cost of tax credits for small employers; and
– An additional $99 billion in net deficit reductions from penalty payments, the excise tax on high-premium insurance plans, and other effects on tax revenues and outlays—with most of those effects reflecting changes in revenues.
Jonathan Cohn at the New Republic digs into the details and rebuts those Republicans who INCORRECTLY say Obamacare now costs double:
To figure out the cost of health care reform, CBO looks at each of the law’s component parts and, for accounting purposes, groups them into different categories. It calls one category “gross cost of coverage expansions” – that’s the amount of money the federal government will spend to help people get insurance, mostly by offering Medicaid to more people or giving people subsidies they can use to help offset the cost of private insurance. Last year, CBO estimated that the gross cost of coverage expansion from 2012 through 2021 would be $1.445 trillion. Now CBO thinks the gross cost will be $1.496 trillion. The number shifted, in part, because the CBO has changed its projections for economic growth. (MSNBC’s Tom Curry has a nice explanation of this.) But, in the context of such a large a budget projection, that’s barely any difference at all.