Wednesday, February 5, 2014

New CBO PPACA Estimates Released

On Tuesday the CBO released its updated 10 year budget and economic outlook. The items that garnered the most media attention were appendix B and C which focused on updated impact of PPACA.

Here are some highlights of the report:

-The net cost from the PPACA coverage provisions between 2015-2024 are expected to be $1.48 trillion.

-The expectation is that the number of nonelderly people who have health insurance will increase by 13 million in 2014.

-Still, according to estimates 31 million nonelderly residents of the US will not have insurance in 2024.

-The CBO and JCT reduced the projected number of people who would be covered through the marketplace in 2014 from 7 million to 6 million.

-It is estimated that 80% of those enrolling in the marketplace will receive subsidies.

-The average subsidy per subsidized enrollee is expected to be $4700

-The number of people expected to be covered through employment-based coverage increased compared to the previous outlook.

-The CBO estimates that PPACA will cause a reduction of roughly 1% in aggregate labor compensation over the 2017-2024 period. Mostly because workers will choose to supply less labor so they can gain or keep eligibility for PPACA subsides.

-The reduction in hours worked represents a decline in the number of full-time equivalent workers of about 2 million in 2017, rising to about 2.5 million in 2024.

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