ObamaCare’s gross cost during the next ten years is expected to nearly double the $940 billion price tag projected in 2009. Phil Klein reports on the Democratic Party’s sketchy math that resulted in the discrepancy:
Democrats employed many accounting tricks when they were pushing through the national health care legislation, the most egregious of which was to delay full implementation of the law until 2014, so it would appear cheaper under the CBO’s standard ten-year budget window and, at least on paper, meet Obama’s pledge that the legislation would cost “around $900 billion over 10 years.” When the final CBO score came out before passage, critics noted that the true 10-year cost would be far higher than advertised once projections accounted for full implementation.
Today, the CBO released new projections from 2013 extending through 2022, and the results are as critics expected: the ten-year cost of the law’s core provisions to expand health insurance coverage has now ballooned to $1.76 trillion.
However, the projected net cost of ObamaCare is actually down, though not for a particularly encouraging reason. The CBO estimates that many more Americans will lose private insurance coverage under ObamaCare than previously thought, which means the federal government will rake in more revenue from fining uninsured individuals and businesses that don’t provide coverage. IBD reports:
The projected rise in revenue is ironically largely due to the increase in the uninsured and the decline in employer-based coverage.
The government will fine individuals $45 billion — up from $34 billion — for failing to have insurance. Businesses are expected to pay $96 billion for not providing coverage, an increase of $15 billion.
Another $81 billion in higher net revenues comes largely from employees no longer getting tax-exempt health insurance but instead being paid more in taxable wages.
So ObamaCare will cost more than thought, but make up for it by increasing the number of Americans who are uninsured, and thus fineable. And remember, this is all happening because the Obama administration wanted to lower insurance costs and provide more coverage for the uninsured.