On April 14 the Congressional Budget Office released an updated estimate on the costs of the coverage provisions in the Affordable Care Act as well as updating the ACA’s overall budgetary impact. The news is good – the CBO and the Joint Committee on Taxation estimate that the law will cost the federal government $5 billion less in 2014 than it estimated in February of this year. For a 10 year period from 2015 to 2024 the law is expected to cost $104 billion less than previous estimates.
Premium cost are cited as the reason for the lower spending estimates – lower than expected premiums meant less federal money was spent on subsidies for plans purchased on HealthCare.gov and state-run marketplaces.
And according to the number from Washington Post Wonkblog reporter Jason Millman it’s good news that’s expected to continue.
“The CBO is also expecting a small increase in 2015 premiums. The premium for the benchmark silver plan, which is used to determine subsidies, is expected to rise from $3,800 in 2014 to just $3,900 in 2015. However, premium increases are expected to grow larger in later years, but the CBO said expected 2016 premiums are still 15 percent below its projection from more than four years ago.”