The Congressional Budget Office (CBO) disclosed an update of the Affordable Care Act (ACA) saying that the Obamacare costs less than what has been projected. It became less disastrous every day. CBO said the latest overall costs are now about $14 billion per year lower than estimated a couple of months ago, $56 billion per year cheaper than the first released estimate in 2010. And that’s a whopping 30% less as compared to the 2010 figures.
Obamacare Gets Cheaper
Regularly, the CBO releases an update for the public of the cost projections for the federal programs and lately the number is showing a great improvement on the Obamacare.
It was on the year 2010 when the Congress passed the Obamacare law. Obamacare law helps beneficiaries in purchasing insurance in case of emergencies like health and medical.
According to CBO, the annual cost of administering the law and the subsidies provided to the beneficiaries would be about $172 billion in 2019. Last January, CBO dropped its 2019 estimate to $135 billion per year and now to $121 billion per year.
The Primary Reasons
CBO has cited two primary reasons on the lessening of the Obamacare budget.
First reason: General healthcare costs have dropped. This is a great news for everyone especially for those who are paying healthcare – both Obamacare enrollees and not.
Second reason: There is a small drop in the CBO’s estimates because of the fact that there are only small number of people who will be uninsured in the coming years and this means fewer people to be enrolled in Obamacare and that would led to lower total subsidy costs.
Why healthcare costs slowdown?
The real reason on the dramatic slowdown of healthcare costs is not clear. For the past two decades, there had been 3 or 4 times of inflation rate growth and that really harmed the general public and the private companies. According to an economist, the possible reason is the cutting back of the healthcare spending and cost-control efforts of many families on healthcare system and insurance policies.
On the other side, the Obamacare law supporters have this claim that law itself has been a great help in curtailing the costs. This is because more people are getting preventive care, pre-empting the need for more costly interventions. However, the CBO is still not sure if the slowing down of the ACA cost would happen as the provisions of the main coverage only went into effect just last year.
The White House said that before 2015 ends, there would be 11.7 million people enrolled in the ACA and that is 7 million up in 2014. Despite that, Obamacare law is facing technical challenges and criticisms; the ACA has become an integral part of the healthcare system and lowering down the number of uninsured Americans.
Getting insurance is definitely a big help for every family. When you get insured, it would not be that really hard to stand again when involved in unwanted situations like getting your house burned as you can just easily get fire damage restoration with the help of an insurance policy. Such situation is just the same with being enrolled in ACA making every American get access to affordable and quality health insurance.