KHN Morning Briefing

Summaries of health policy coverage from major news organizations

full issue

CBO Again Lowers Health Law’s Cost Estimates

In its latest projection, the Congressional Budget Office sharply drops its estimates of what the health law will cost for the 2015-19 period.

The New York Times: Budget Office Again Reduces Its Estimate On Cost Of The Affordable Care Act
The Congressional Budget Office on Monday again lowered its estimate of the cost of the Affordable Care Act, citing slow growth of health insurance premiums as a major factor. Just since January, the budget office said, it has reduced its estimate of the 10-year cost of federal insurance subsidies by 20 percent, and its estimate of new Medicaid costs attributable to the law has come down by 8 percent. (Pear, 3/9)

The Wall Street Journal: Health Law To Cost Less Than Forecast Earlier
Nearly five years after President Barack Obama signed the Affordable Care Act into law, federal budget scorekeepers have sharply revised down the projected costs of the bill. In the latest projection, published by the nonpartisan Congressional Budget Office on Monday, the major insurance provisions of the law will cost the government 11% less than they forecast six weeks ago, reducing the taxpayer tab by $142 billion over the coming decade. (Timiraos, 3/9)

The Washington Post: Health-Care Law Will Cost Taxpayers Less Than Expected, CBO Says
The nonpartisan Congressional Budget Office attributed the savings to spending on medical care in coming years that will not be as great as previously forecast. As a result, the agency said, insurers are not expected to charge Americans as much for coverage, and the government will save on subsidies for low- and moderate-income people. What’s more, the CBO has concluded that companies are not canceling health insurance policies as often as had been anticipated earlier this year. Fewer Americans consequently are planning to sign up for insurance under the Affordable Care Act, generating more taxpayer savings. (Ehrenfreund and Somashekhar, 3/9)

The Associated Press: CBO: Slowing Costs Reduce Price Of Health Care Overhaul
Slowing health care costs are driving down the price tag of President Barack Obama's health overhaul, just as the Supreme Court is weighing whether to strike a key part of the law. Estimates released Monday reduce the projected cost to taxpayers by $142 billion over the next decade. That's an 11 percent drop from previous estimates. (Ohlemacher, 3/9)

Los Angeles Times: Q&A: Why Affordable Care Act Costs Continue To Fall
As the Supreme Court considers the fate of government subsidies to millions of consumers receiving coverage under the Affordable Care Act, a nonpartisan budget analysis found Monday that projected costs of President Obama's signature healthcare program continued to fall. Just in time for Washington's annual fight over government spending, the Congressional Budget Office issued its revised outlook for the projected costs of implementing the act. As it has previously, the budget office found that the program is proving to be less expensive than previously expected. Here's a look at some of its latest findings. (Mascaro, 3/9)

CNN Money: Obamacare Will Cost Less Than Thought
The president's landmark health reform law will cost $506 billion for the coming five fiscal years, according to updated projections from the Congressional Budget Office, released Monday. That's 29% less than the agency's projection back in March 2010. (Luhby, 3/9)

The Fiscal Times: CBO Rolls Back Obamacare’s Price Tag
Washington budgeteers have some good news for Obamacare and its impact on the federal deficit. The non-partisan Congressional Budget Office along with the Joint Committee on Taxation have revised the cost of the Affordable Care Act down to $1.21 trillion over the next decade. That’s an 11 percent reduction, or roughly $143 billion less than the $1.34 trillion the agency had projected in January. (Ehley, 3/9)

Modern Healthcare: Estimated ACA Costs Fall Again, Even As Expected 'Cadillac' Tax Revenue Dwindles
Spending on the insurance coverage provisions of the Affordable Care Act is projected to be $142 billion lower than the figure arrived at six weeks ago, according to the Congressional Budget Office. That's primarily due to reduced enrollment projected for exchange plans and Medicaid, as well as lower than anticipated premium costs. But while spending on exchange subsidies is expected to be much lower, so, too, is revenue from the ACA's controversial excise tax on health plans with generous benefits, the CBO said. (Demko and Herman, 3/9)

This is part of the KHN Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.