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Implementing Health Reform: The Congressional Budget Office On Repealing The ACA

The Congressional Budget Office report on the Budgetary and Economic Effects of Repealing the Affordable Care Act has been widely reported and by now its themes are well known. I add just a few observations.

The report was the first since 2012 analyzing the likely results of a repeal of the law. Indeed, in 2013 the CBO declined a request that it again estimate the results of a repeal as too difficult and unnecessary.  The report was also the first time the CBO applied “dynamic scoring,” to its repeal estimate, a change that had been required by the new Republican majorities in the House and Senate. The CBO, that is, for the first time looked not only at the direct effects of repeal on changes in revenues and expenditures in the federal budget, it also considered the broader macroeconomic consequences of repeal on the economy, and the indirect effects of these consequences on the federal budget.