How much does Obama's medical reform cost?
Does Obama's medical reform increase or decrease US debt? The answer can be very confusing. It is estimated that the first decade will save $143 billion and an additional $1,760 billion. Also, US President Barack Obama initially claimed that the patient protection and affordable care act would add $940 billion in debt in the first decade. Who is right? They are all. How is this done?
How Obama Medical Reform Reduces $143 Billion in Debt
The non-partisan Congressional Budget Office said that aca will reduce its debt by $143 billion. It adds up the cost of implementing the two laws of Obama's health care reform. The Patient Protection and Affordable Care Act (Public Law No. 111-148) details the plan. The Healthcare and Education Coordination Act (Public Law 111-152) has passed the new Obamacare tax cuts and budget cuts in other areas, offsetting the cost of the program.
The following five new aca taxes will bring in an additional $567 billion in revenue:
Hospital insurance tax - $212 billion.
Non-compliance with taxes - $64 billion.
Cadillac Health Insurance Tax - $32 billion.
Medical device and insurance company tax – $107 billion.
Increase the medical deduction limit to 10% - $104 billion.
In addition, in five areas, aca saved a total of $477 billion in costs:
Reduce subsidies for the rich – $87 billion.
Reduce hospital DSH payments - $37 billion.
Reduce medical insurance spending – $197 billion.
Reduce the cost of medical insurance benefits - $135 billion.
Direct service education loans. This eliminates the cost of private loan service provider SallieMae - $20 billion.
If the cost of $940 billion is deducted, the deficit will be reduced by $104 billion. If Trump abolishes and replaces the Obamacare reform plan, it will be added to the deficit. Where did CBO get another $40 billion in savings? A plan to provide long-term care insurance from the federal government. The Congressional Budget Office believes it will reduce the $40 billion in Medicaid costs. Unfortunately, it was quickly discovered that the cost of long-term care was much higher. This plan was cancelled.
Obama says it costs $940 billion
On March 23, 2010, President Obama signed the Anti-Corruption Law. He said that the first 10 years of the law (2010-2019 fiscal year) will cost $940 billion. The Congressional Budget Office completed this estimate in an analysis on March 18, 2010. A few days later, the Congressional Budget Office reduced the cost forecast to $938 billion based on a more detailed analysis. Estimated from five cost areas, they are not directly offset by revenue:
Expand Medicaid and Chips - $434 billion.
Tax credit for small businesses that provide insurance - $40 billion.
Establish a medical insurance exchange – $358 billion.
A tax credit for those who can't afford insurance - $106 billion.
To learn more about these programs, see the Obama Care Act.
Congressional Budget Office says it spent $1.76 trillion
In March 2012, CBO estimated its Obamacare costs as $1,760 billion. The Minority Office of the Senate Budget Committee reported that this was twice the CB's initial estimate of $940 billion. Is the cost of Obama's medical reform out of control? Are the supporters of Obama’s medical reform deliberately misleading us? no no.
First, the initial CBO estimate is FY 2010–FY 2019, a 10-year span. The updated CBO is estimated to be the 11-year span that began two years later, namely FY 2012–FY 2023. The most expensive terms of Obama’s medical reform did not take effect until 2014. Since then, mandatory medical insurance has come into effect. The biggest cost is to expand Medicaid and chips to include more low-income people. The following is a breakthrough:
Expand Medicaid and chips - $931 billion.
Small business tax credits - $23 billion.
Set up exchanges and provide tax credits for those who can't afford insurance (combined) - $808 billion.