CBO update estimates $84 billion savings from SCOTUS decision

July 31, 2012

On June 28, 2012 the Supreme Court announced its decision on the health care law, which upheld the constitutionality of the individual mandate and allowed states to opt-out of Medicaid expansion. The Congressional Budget Office (CBO) recently released an updated budget estimate to reflect changes in the insurance coverage provision of the ACA resulting from the Supreme Court’s decision.

While SCOTUS upheld the constitutionality of the ACA’s individual mandate that requires people to purchase insurance or pay a penalty tax, this is not the reason why the CBO revised its budget estimate. The update was necessary to reflect projections stemming from the SCOTUS decision that fewer people will be covered by Medicaid and CHIP (6 million), and more people will be enrolled in and exchanges (2 million) and uninsured (4 million) than their previous estimate. As a result of these changes, CBO estimates net costs will be $84 billion less than originally projected.

 

CBO Budget Estimates for(2012 – 2022) Net Costs (billions)
March  2012 $1,252
July 2012 – Post SCOTUS update $1,168
Savings $84

 

Changes In Insurance Coverage (millions)

March 2012 July 2012 Difference
Medicaid & CHIP

13

7

-6

Exchanges

8

9

+2

Uninsured

-18

-14

+4

Numbers may not add up to totals because of rounding.

Read the entire CBO report.

Visit Extend Health to use the ExtendExchange™ platform – the nation’s largest private Medicare insurance exchange.

2 Responses to “CBO update estimates $84 billion savings from SCOTUS decision”

  1. John said

    Repeal the whole monstrosity in it’s entirety . . .

  2. […] blog post: CBO update estimates $84 billion savings from SCOTUS decision Rate this:Share this:ShareFacebookTwitterStumbleUponRedditDiggEmailPrintLike this:LikeBe the first […]

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: