New Study Says Cost of Health Reform Subsidies Could Far Exceed Previous Estimates

[I AM NOT THAT GUY 5,715]

A new study by the Lewin Group estimates that 28.6 million Americans will be eligible for a federal subsidy to purchase health insurance beginning in 2014 at a projected cost to tax payers in excess of $110 billion. This estimate is dramatically higher (578%) than the cost of these subsidies forecast by the Congressional Budget Office (CBO) prior to the bill’s enactment into law. If the new estimate is correct, it would mean that instead of lowering the deficit by $143 billion over ten years—a claim widely touted by proponents of the law— the legislation would begin adding to the deficit as early as 2015, only one year after major provisions of the law go into effect.

A central component of the Patient Protection and Affordability Act is the establishment of health insurance exchanges starting in 2014, enabling individuals and families with incomes up to 400% of the federal poverty level who do not have insurance to purchase federally subsidized coverage. The CBO’s final analysis of the bill enacted into law projected that only 7 million Americans would begin receiving these subsidies in 2014 at a total budgetary cost of $19 billion. This figure is $91 billion lower than the amount estimated by the Lewin Group.

The Lewin Group study was commissioned by Families USA, a healthcare reform advocacy group based out of Washington D.C. which is closely allied with the White House and leading Democrats in Congress.

The CBO’s projection that the healthcare reform bill would reduce the deficit by an estimated $143 billion over 10 years was a critical factor in the enactment of the bill. Democrats lost their super-majority in the Senate in January 2010 when Scott Brown was elected in Massachusetts, and ultimately passed the bill in March only through the use of procedural tactics, and without a single Republican vote in the House or Senate.

The claim that the bill will reduce the deficit continues to be a leading selling point for proponents of reform. Just last month Families USA repeated this claim in a press release criticizing opponents of the legislation. But if the latest Lewin Group estimate is correct the initial 10-year cost of the bill will be significantly higher than what was forecast by the CBO, and would begin adding to the federal deficit as early as 2015.

http://www.verumserum.com/?p=18038

[luckytxn 2,264]

Well Duh! Only a moron would have believed that we were going to save. There has never ever been a time when the Feds got a hold of something and it didn't end up costing a lot more than the estimates

[lostinblue 1,989]

Well Duh! Only a moron would have believed that we were going to save. There has never ever been a time when the Feds got a hold of something and it didn't end up costing a lot more than the estimates

After all we have a few more IRS agents on the payroll. That will help grandma with her meds

[JohnSmith2007 353]

Am I surprised? Nope.

[Hilarious Clinton 452]