Obamacare Will Cost 20% Less Than Projected

| by Amanda Andrade-Rhoades

The Affordable Care Act, President Obama’s signature healthcare law, is a lot cheaper than previously thought. Whatever the cost however, the Affordable Care Act, also known as Obamacare, faces major hurdles in the Supreme Court.

A new report by the Congressional Budget Office found that, as it is now, Obamacare will cost 20 percent less than previously projected over the next decade. The estimate has been revised as a result of a decline in healthcare cost related inflation. 

Through 2019, the law's insurance provisions will cost an estimated $571 billion, down $139 billion from the CBO's initial estimates, Bloomberg reported.

In addition, the number of uninsured Americans has fallen by 12 million and another 12 million people are expected to gain insurance by the end of 2016.

However, by 2025, 31 million people will remain uninsured. Due to the aging Baby Boomer population, Medicaid will cost the federal government $59 billion more than previously projected over the coming decade.

The fate of the Affordable Care Act, however costly it may or may not be, is in the hands of the Supreme Court. 

Soon, the Supreme Court will take up the case of King v. Burwell, which could strike down federal subsidies offered in the Affordable Care Act- which makes healthcare affordable for lower income Americans.

Source: Bloomberg Image via Pete Souza/Wikimedia Commons