Congrats, ObamaCare, you had the worst week in Washington. It’s no secret that President Barack Obama’s signature domestic policy achievement has come at a high cost to taxpayers. Earlier this week, the Congressional Budget Office (CBO) noted that the estimated cost tag for ObamaCare was $1.165 trillion over the next 10 years, more than the original estimate of $945 billion.
What is one of the driving factors of the increased costs? John Berline dove further into the CBO’s recent report and found that the costs of the insurance exchanges have jumped significantly since the law was passed:
The CBO’s new baseline estimate shows that ObamaCare subsidies offered through the insurance exchanges — which are supposed to be up and running by next January — will total more than $1 trillion through 2022, up from $814 billion over those same years in its budget forecast made a year ago. That’s an increase of nearly 29%.
The CBO upped the 10-year subsidy cost by $32 billion since just last August.
In part, this jump is because more people will get insurance via the exchanges than it had forecast. Where the CBO had seen 22 million enrolled in an exchange in 2022, it now figures 25 million will be.
Last year, the CBO said the average exchange subsidy for those getting federal help when ObamaCare goes into effect next year would be $4,780. Its latest estimate raised that to $5,510 — a 15% increase. All these numbers are up even more from the CBO’s original forecast made in 2010, which had the first-year subsidy average at $3,970.
ObamaCare was passed in March 2010, but the exchanges aren’t set to go into effect until the beginning of 2014. That’s nearly a four-year period and the costs of the state exchanges have jumped by 29%, as Veronique de Rugy notes.
There were so many promises made when ObamaCare was being debated in Congress. But most of the major claims have turned out to be false. While he touched on the other broken promises made when the law was passed, Daniel Kessler recently explained why the promise of reduced deficits because of ObamaCare has been completely shattered because of accounting gimmicks used its proponents.