Manhattan Institute for Policy Research.
search  
 
Subscribe   Subscribe   MI on Facebook Find us on Twitter Find us on Instagram      
 
 
   
 
     
 

Medical Progress Today

 

Obamacare Evaluation Project - Cost Update: Exchange Subsidies Grow 27 Percent

April 16, 2013

By Yevgeniy Feyman

In a recently released report for the Manhattan Institute's Center for Medical Progress, my colleague, Paul Howard, and I grade the Affordable Care Act on its predicted impact on the cost of providing health care. Based on available evidence from CMS, CBO, and other analysts, we found little evidence that the law would reduce health care spending; indeed, most evidence indicates that individual and family premiums, as well as total national health care spending will grow unabated (and possibly faster).

However, given that implementation of the ACA is still in progress, we acknowledged that our findings may change as new evidence surfaces, and that we will track and report on new findings as they are released. This is the second in a series of updates.

While the latest White House Budget (for FY 14) brought a few welcome reform ideas (switching to Chained CPI for government programs, for instance) and some less welcome (price controls in Medicare Part D) one side of the budget may have received less attention than it deserves.

The estimated cost of the exchange subsidies under the law has increased roughly 27 percent.

The Office of Management and Budget at the White House now projects the cost of the subsidies to total $605 billion from 2014, when they first begin, through 2021 - in the FY 13 budget, the estimate was $127 billion less at $477 billion. Still, these estimates are both below CBO projections for the subsidies which stand at an ominous $882 billion for the eight years - some of this may have to do with CBO including spending for high-risk pools and premium review activities - but it likely indicates different estimates (between OMB and CBO) of the number of people who will qualify for subsidies as well as their health status.

That OMB's costs are closing in on CBO's estimates seems to bode poorly for the fiscal implications of the health care law, however.

Original Source: http://www.medicalprogresstoday.com/2013/04/obamacare-evaluation-project-cost-update-exchange-subsidies-grow-27-percent.php

 

 
PRINTER FRIENDLY
 
LATEST FROM OUR SCHOLARS

‘Afroducking’ The Law: Deadly Excuses For Endangering Others
Nicole Gelinas, 11-17-14

2014’s Most Encouraging Democratic Victory
Daniel DiSalvo, 11-14-14

Bring Deferred Prosecution Agreements Out Of The Shadows
James R. Copland, 11-12-14

Coal Trumps IPCC, Again
Robert Bryce, 11-12-14

World Leaders, Ignore Obama And Do These Five Things Instead
Diana Furchtgott-Roth, 11-12-14

ACA Architect: ‘The Stupidity Of The American Voter’ Led Us To Hide ACA Costs
Avik Roy, 11-11-14

Cancer Drug Prices: A Convenient Scapegoat for a Complex Problem
Paul Howard, 11-11-14

A Supreme Court Case That Could Upend Obamacare
Diana Furchtgott-Roth, 11-11-14

 
 
 

The Manhattan Institute, a 501(c)(3), is a think tank whose mission is to develop and disseminate new ideas
that foster greater economic choice and individual responsibility.

Copyright © 2014 Manhattan Institute for Policy Research, Inc. All rights reserved.

52 Vanderbilt Avenue, New York, N.Y. 10017
phone (212) 599-7000 / fax (212) 599-3494