CBO Confirms: The Health Care Law Reduces the Deficit
05:39 PM EDT
This afternoon, the Congressional Budget Office (CBO) released its latest look at the Affordable Care Act – the health care law. This report affirms that repealing the health care law would deny tax credits for millions of middle class families and result in higher deficits and fewer Americans with insurance.
Once again, the Congressional Budget Office has found that repealing the health care law will increase the federal budget deficit by more than $100 billion in the first decade and more than a trillion dollars in the next decade. CBO also found that 30 million Americans would remain uninsured without the Affordable Care Act.
And CBO projects that most Governors will choose to expand their Medicaid programs. The Medicaid expansion is completely paid for by the Federal government in the first three years, and the Federal government will cover at least 90 percent of these costs in the years ahead. According to CBO “…states and local governments will probably realize savings in existing programs that provide direct care to people who are uninsured or that cover uncompensated costs incurred by providers serving uninsured residents.” Other independent analysts have also found that states that fully implement the Affordable Care Act could save money through reductions in the amount they spend to care for the uninsured.
We hope states will take advantage of the options in the health care law to improve access to affordable coverage. And history suggests that they will act. All but two states implemented Medicaid and the Children’s Health Insurance Program (CHIP) within five years of enactment – despite less generous financial support than the Affordable Care Act provided for this Medicaid expansion.
As the President has said, this law is here to stay, and we will continue our efforts to work with States to deliver the benefits of the law to the American people.