Repealing ACA's individual mandate would save $300B, CBO says
- A controversial ACA mandate requires individuals to obtain health insurance or pay a penalty.
- A recently released report from the Congressional Budget Office estimates repealing the ACA’s individual mandate and its related penalties would “reduce the deficit by about $305 billion” between 2015 and 2025.
- The agency and the Joint Committee on Taxation (JCT) estimate individual health insurance policy premiums would increase about 20% in all years from 2017 and 2025 under such conditions.
While the savings seem nice, not all of the agencies’ predictions are rosy. CBO and JCT estimate that while eliminating the mandate would save a large sum of money, the number of people without health coverage would increase in 2025 by about 14 million people, with a total of 41 million uninsured that year.
“That increase in the uninsured population would consist of roughly 5 million fewer individuals with coverage under Medicaid or the Children's Health Insurance Program, 1 million fewer individuals with employment-based coverage, and 8 million fewer individuals with coverage obtained in the individual market (including individual policies purchased through the exchanges or directly from insurers in the nongroup market),” the agencies wrote.
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