The Congressional Budget Office (CBO) and the Joint Committee on Taxation just recently released the updated cost estimates on the health insurance provisions of the Patient Protection and Affordable Care Act, also known as Obamacare. Since the U.S. Supreme Court gave the states the right to refuse Medicaid expansion, the CBO estimates that this will cost $84 billion dollars less to implement the provisions of Obamacare.
CBO also said in the report that the ruling of the Supreme Court will ultimately affect millions of children and adults. The new ruling would result in a decrease of three million in the number of people who’ll get health care coverage under the Affordable Care Act by 2022. The report also added that the Court’s ruling on the expansion of Medicaid would result in an increase in the number of uninsured individuals since fewer people will be given the chance to enroll in Medicaid and CHIP (Children’s Health Insurance Program). About six million people will lose Medicaid coverage in 2014 and in 2022, the report said.
This change in the health care reform law would result in a $289 billion dollar reduction of the federal government’s spending on Medicare and CHIP. Despite the lowering of costs with the Supreme Court’s revision of the health care reform law, repealing Obamacare would actually increase the federal budget deficit by $109 billion.
According to the projections made by the CBO, some states are planning to partially implement Medicaid expansion. That, instead of expanding coverage to people with incomes up to 133 percent of the federal poverty level, would just extend it up to 120 percent or less. The Department of Health and Human Services has not yet responded to the written request sent by 21 Republican governors to partially expand Medicare. Time will tell how these changes will affect so many Americans.