CBO Reaffirms That Health Reform Will Reduce the Deficit

http://www.offthechartsblog.org/cbo-reaffirms-that-health-reform-will-reduce-the-deficit/

The Congressional Budget Office (CBO) issued its third complete estimate today of the effects of the health reform law (the Affordable Care Act, or ACA). As with its two prior estimates, in March 2010 and February 2011, CBO again estimated that health reform will reduce the deficit — modestly over its first ten years and by an amount equal to about one-half of one percent of gross domestic product over its second decade.

CBO estimates that repealing health reform, as the House voted two weeks ago, would:

Increase the federal deficit by $109 billion over the 2013-2022 period and
Cause 30 million people to lose health insurance coverage.

CBO and the Joint Committee on Taxation have also updated their estimates of health reform to reflect the recent Supreme Court decision. Some observers contended that the decision would substantially increase the cost of health reform. As we predicted, however, CBO finds that the court’s decision will leave more people without health insurance and reduce the cost of the legislation.

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