The Affordable Care Act is the opposite of an unaffordable new entitlement; it is a way to insure 30 million more people while reducing the federal government’s deficit at the same time, according to today’s report from the nonpartisan Congressional Budget Office, which is the closest thing that the United States has to an unbiased financial umpire.
CBO also scored the budgetary impact repealing the health reform law, as endorsed by Mitt Romney and House and Senate Republicans. They found that repeal would add to the deficit while also taking away the insurance that those 30 million people would have gained. In addition, repeal would overturn rules that bar insurance companies from denying coverage due to pre-existing conditions, from canceling coverage when people become ill, and from placing a lifetime dollar limit on coverage. Other provisions that repeal would reverse are the phase-out of the “donut hole” where seniors have no Medicare coverage for prescription drugs, the right of young adults to remain on their parents’ insurance policies through age 26, and the requirement that insurance companies spend at least 80 or 85% of premium dollars (depending on the type of policy) on health services rather than administration and profits.
Also prohibited under the law starting in 2014 will be annual coverage limits and gender discrimination (women currently can be charged higher rates than men for the same coverage).
From Jon Cohn’s new article in The New Republic:
The Congressional Budget Office just published a newly updated estimate of the Affordable Care Act and its impact on the budget. The estimate largely tells us what we already knew: The law, when fully implemented, will dramatically reduce the number of Americans without health insurance. It will also reduce the deficit.
This last part remains a big deal, if only because so many conservatives—and, yes, so many members of the public—refuse to believe it. Over and over again, you hear people saying that Obamacare will run up the deficit. The CBO, which is our most reliable guide on such matters, begs to differ.
CBO can’t be certain, because nobody can be certain, how exactly the law will play out. But the best available evidence suggests that, in the end, the law will leave the federal treasury with more money than it would have otherwise. And that’s just in the short- to medium-term. If the program’s efforts at re-engineering the health care system really work, then all spending on health care—from the federal government, corporations, and individuals alike—will stop rising so quickly, freeing up more money for other purposes (like, for example, raises to employees).