CBO: Cost of Obamacare Subsidy Will Increase 8-Fold in 10 Years | CNS News


(CNSNews.com) – The cost of the Obamacare subsidy that the U.S. Treasury will pay on behalf of people who earn under 400 percent of the federal poverty level and who buy a government-approved health-care plan on a government-run health-insurance exchange will increase by approximately 8-fold in its first ten years of operation, according to the latest budget estimate from the Congressional Budget Office.

Medicaid spending will double in the first ten years of full implementation of Obamacare, according to the CBO estimates.

Under the Patient Protection and Affordable Care Act, the federal government requires Americans to purchase a health-insurance plan that meets government specifications. If they buy that insurance through a government-run exchange, and earn less than 400 percent of the federal poverty level, the U.S. Treasury will pay a part of their premium. The amount the Treasury pays decreases as a person’s income increases toward the 400-percent-of-poverty level.

At the same time, the Affordable Care Act expands the Medicaid rolls by providing subsidies to states that make people earning up to 133 percent of poverty eligible for the program. People signing up for insurance on the exchange whose income is below that level must be enrolled in Medicaid.

“ACA’s Medicaid expansion provisions have the potential for affecting eligibility for premium credits if certain low to middle income individuals and families seek health insurance through the exchanges,” says the Congressional Research Service. “Under ACA, states have the option to expand Medicaid eligibility to include all nonelderly, non-pregnant individuals (i.e., childless adults and certain parents, except for those ineligible based on certain noncitizenship status) with income up to 133% FPL.”

“States that choose to implement the ACA Medicaid expansion will receive substantial federal subsidies,” says the Congressional Research Service. “If a person who applied for premium credits in an exchange is determined to be eligible for Medicaid, the exchange must have them enrolled in Medicaid.”

Read complete article via CBO: Cost of Obamacare Subsidy Will Increase 8-Fold in 10 Years | CNS News.