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CBO Estimates ACA to Cost $54 Billion More Than Expected Between 2012 and 2021

The Congressional Budget Office (CBO) has released its budget forecast for fiscal year (FY) 2012 through FY 2022 in a report that projects a $1.079 trillion deficit for FY 2012. Key assumptions in the CBO projections include an increased cost of $54 billion for the Affordable Care Act (ACA) due to 1) the repeal of the CLASS Act (reducing $76 billion in premiums) and 2) correction of the modified adjusted gross income formula used to calculate Medicaid eligibility (the Medicaid “glitch”) netting revenue increases of $22 billion. The report also estimates the Medicare Hospital Insurance Trust Fund will be insolvent in 2022 rather than 2024 as reported in CBO’s August 2011 projection. Medicaid spending will increase in 2012 and 2013 and increase rapidly in 2014 through 2016 due to implementation of the Medicaid expansion in the ACA. A copy of the CBO budget projections is available on the CBO website at http://tinyurl.com/7w6×5ecContact: Anne McLeod, (916) 552-7536, amcleod@calhospital.org.  

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