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Here's how GOP repeal of Obamacare would swell the federal deficit
Repealing Obamacare will cost the federal government as much as $350 billion, according to a new estimate.
Congressional Republicans are eagerly anticipating their long-awaited chance to repeal the 6-year-old Affordable Care Act, one of the signature achievements of the Obama administration.
That enthusiasm may be dampened when they learn how much the repeal will cost.
The $350 billion cost estimate in an analysis released Wednesday by the nonpartisan Committee for a Responsible Budget would be spread over 10 years unless key provisions of the law are maintained or replaced.
"Repealing the entire ACA would leave no funds available for 'replace' legislation, and in fact would require further deficit reduction to avoid adding to the debt," the report said.
Most of the law's opponents have focused on the added cost of subsidizing health insurance. But the law also includes dozens of provisions that cut health care and raise taxes that more than offset the money spent.
Congressional Republicans are eagerly anticipating their long-awaited chance to repeal the 6-year-old Affordable Care Act, one of the signature achievements of the Obama administration.
That enthusiasm may be dampened when they learn how much the repeal will cost.
The $350 billion cost estimate in an analysis released Wednesday by the nonpartisan Committee for a Responsible Budget would be spread over 10 years unless key provisions of the law are maintained or replaced.
"Repealing the entire ACA would leave no funds available for 'replace' legislation, and in fact would require further deficit reduction to avoid adding to the debt," the report said.
Most of the law's opponents have focused on the added cost of subsidizing health insurance. But the law also includes dozens of provisions that cut health care and raise taxes that more than offset the money spent.
http://www.cnbc.com/2017/01/04/heres-how-gop-repeal-of-obamacare-would-swell-the-federal-deficit.html?__source=twitter
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Paying for an ACA replacement becomes near impossible if the law’s tax increases are repealed (I believe this is the GOP's plan - ie: starve the ACA and Medicare to death)
Repealing the Affordable Care Act (ACA) before a replacement plan can be enacted – even if the repeal is delayed – poses many extraordinary dangers. The Center for Health Policy published a detailed examination of these dangers last week, emphasizing that repealing the ACA before replacing it would cause significant disruption in the individual health insurance market and risk imploding the market altogether if no replacement emerges – all but ensuring that millions of Americans who purchase their own insurance (many of whom had insurance pre-ACA) will become uninsured.
But the effect on the individual marketplace isn’t the only consequence of repealing before replacing. Less discussed are the additional challenges created by the tax cuts that would be enacted if Congress models its ACA repeal on the legislation that was passed (but vetoed) early last year through the budget reconciliation process—a process that seems increasingly likely. These tax cuts would make it much more difficult to achieve a sustainable replacement plan that provides meaningful coverage without increasing deficits.
TAX CUTS WILL ACCELERATE THE EXHAUSTION OF MEDICARE’S TRUST FUND
Specifically, the reconciliation repeal bill from earlier this year eliminated $680 billion (over ten years) of taxes on high-income households and the health care industry (e.g., insurers, device manufactures, and drug companies). In addition to increasing deficits, by rescinding the 0.9% Hospital Insurance Trust Fund payroll tax on wages above $200,000, these tax cuts would also accelerate the exhaustion of Medicare’s Part A Trust Fund by four years, from 2028 to 2024.[1]
Repealing the Affordable Care Act (ACA) before a replacement plan can be enacted – even if the repeal is delayed – poses many extraordinary dangers. The Center for Health Policy published a detailed examination of these dangers last week, emphasizing that repealing the ACA before replacing it would cause significant disruption in the individual health insurance market and risk imploding the market altogether if no replacement emerges – all but ensuring that millions of Americans who purchase their own insurance (many of whom had insurance pre-ACA) will become uninsured.
But the effect on the individual marketplace isn’t the only consequence of repealing before replacing. Less discussed are the additional challenges created by the tax cuts that would be enacted if Congress models its ACA repeal on the legislation that was passed (but vetoed) early last year through the budget reconciliation process—a process that seems increasingly likely. These tax cuts would make it much more difficult to achieve a sustainable replacement plan that provides meaningful coverage without increasing deficits.
TAX CUTS WILL ACCELERATE THE EXHAUSTION OF MEDICARE’S TRUST FUND
Specifically, the reconciliation repeal bill from earlier this year eliminated $680 billion (over ten years) of taxes on high-income households and the health care industry (e.g., insurers, device manufactures, and drug companies). In addition to increasing deficits, by rescinding the 0.9% Hospital Insurance Trust Fund payroll tax on wages above $200,000, these tax cuts would also accelerate the exhaustion of Medicare’s Part A Trust Fund by four years, from 2028 to 2024.[1]
https://www.brookings.edu/blog/up-front/2016/12/19/paying-for-an-aca-replacement-becomes-near-impossible-if-the-laws-tax-increases-are-repealed/
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