CBO: Obamacare Repeal Bill Reduces Deficit By $337 Billion Over 10 Years

CBO Director Keith Hall.
Start your day with TPM.
Sign up for the Morning Memo newsletter

The Congressional Budget Office’s highly anticipated analysis of the GOP bill to repeal the Affordable Care Act dropped Monday afternoon, and the office’s non-partisan research team estimated that the legislation would reduce the federal deficit by $337 billion dollars over the next 10 years.

It is one bit of good news for Republicans in a devastating report that finds tens of millions of people will lose their insurance coverage under their plan over the next decade.

The CBO under its conservative Republican director, Keith Hall (pictured), found that the savings come largely from slashing Medicaid spending, which will lead to 14 million people losing coverage. In total, the government will spend $1.2 trillion dollars less on health care under this plan.

The bill also saves the government $6 billion dollars by eliminating a tax credit for small businesses that provide health insurance to their employees, and more than $600 billion from sharply reducing the subsidies people can get to purchase private insurance on the individual market.

House Speaker Paul Ryan celebrated the report in a press release, touting its measures to “dramatically reduce the deficit.”

Yet these savings are partially offset by a massive reduction in revenue. The bill repeals nearly all of the Affordable Care Act’s taxes on the wealthy and on those who opt not to buy insurance, costing the government nearly $900 billion in revenue. The bill also adds $80 billion in new spending on a Patient and State Stability Fund that states can use to help stabilize their insurance markets help struggling residents pay their medical bills, and increases payments to hospitals that treat the uninsured by $43 billion dollars.

The CBO says in their report they were not given time to analyze the legislation’s macroeconomic effects, a crucial piece of information House lawmakers will not have when they continue debating the bill this week.

Read the full report here:

Latest DC

Notable Replies

  1. Those savings is essentially blood money.

  2. This small tidbit of good news is the only thing the GOP will focus on in order to pass this and completely ignore the millions of Americans they just sent a death sentence. Buckle up, kids, we’re in for a long fight.


  3. Avatar for tsp tsp says:

    I, too, could reduce the deficit by trillions of dollars by drastically reducing T rump’s planned nuclear weapons build-up, and of course, eliminate all spending on that stupid loser border wall.

    But then again, expecting the GOP to serve “the people” is beneath their understanding. How dare we call them “public servants!” We do what they want, not the other way around!

  4. How is Trump and the GOP gonna spin this?
    CBO is waaaaaay off and phony with 14-24M uninsured, just like they were with ACA and “half” as many sign-ups,
    but CBO is right-on and real with $340B savings.

    Phony and Real, again.

Continue the discussion at forums.talkingpointsmemo.com

42 more replies

Participants

Avatar for system1 Avatar for bull_vinkel Avatar for smiley Avatar for ericaz Avatar for losamigos Avatar for inversion Avatar for ralph_vonholst Avatar for tomanjeri Avatar for bonvivant Avatar for maxaroo Avatar for pbolo Avatar for thomasmatthew Avatar for fiftygigs Avatar for joepaulson Avatar for tsp Avatar for coimmigrant Avatar for micande Avatar for katscherger Avatar for tindalos Avatar for pauldownard Avatar for drwho Avatar for jadez Avatar for fmbnyc Avatar for lnfgo

Continue Discussion
Masthead Masthead
Founder & Editor-in-Chief:
Executive Editor:
Managing Editor:
Deputy Editor:
Editor at Large:
General Counsel:
Publisher:
Head of Product:
Director of Technology:
Associate Publisher:
Front End Developer:
Senior Designer: