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Thursday, March 15, 2012

Bait and Switch--CBO Reports That Obamacare will Cost Twice as Much

The CBO is now estimating that Obamacare will cost twice its original projection--$1.73 Trillion through 2022, twice the original estimate of $900 Billion (and this does not include all the costs of implementation). Sen. Jeff Sessions also contends that the bill will ensure fewer people, and implements higher taxes than promised. (Full story here).

This shouldn't really be surprising since, according to the Democratic leadership, we needed to pass the bill to find out what was in it.

Of course, the liberal media has a different spin on the subject, saying that the current estimate is less than a prior estimate (which still doesn't explain why its twice as much as the original estimate), and then explaining that it is difficult to get an accurate estimate because the costs are a moving target.
The CBO explained in its report that “the addition of 2022 to the projection period has the effect of increasing the costs of the coverage provisions of the ACA relative to those projected in March 2011 for the 2012–2021 period because that change adds a year in which the expansion of eligibility for Medicaid and subsidies for health insurance purchased through the exchanges will be in effect.”

Two core provisions of the law do not take effect until 2014: expanded Medicare eligibility for the poor and the insurance subsidies for middle-income people. And the tax on high-cost so-called “Cadillac” health insurance plans does not start until 2018.
In other words, as the CBO has to start calculating various mandates and provisions that don't take effect until further down the road, the costs keep going up. The funny part of the MSNBC article is that it never explains why the changing estimates is an issue--that is, it doesn't talk about the fact that Obamacare will cost twice as much as originally promised.

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