While that all sounds really nice, I might remind our readers that the CBO claimed Obamacare would reduce deficit. Now, three years later we find that the CBO was a tad off.
Obamacare will cost $6.2 trillion!
Then: In his September 9, 2009, speech to a joint session of Congress, President Obama declared, “I will not sign a plan that adds one dime to our deficits—either now or in the future.”
Now: Over the next 75 years, the Affordable Care Act—Obamacare—will add an estimated $6.2 trillion to the primary deficit under the most realistic outlook on federal spending, according to a new report by the Government Accountability Office (GAO), the nonpartisan fiscal watchdog of Congress. The primary deficit, as noted by the GAO, is the difference between federal revenues and non-interest spending.
Senator Jeff Sessions (R–AL), who commissioned the study, released its findings this morning at a Senate Budget Committee hearing. The GAO report examines the long-term impact of Obamacare on the nation’s fiscal health.
Projections of spending and deficits and debt, as the GAO analysts observe, are often calculated under the “Baseline Extended Simulation,” which assumes that current law will “continue unchanged.” These projections can also be calculated under an “Alternative Simulation,” which assumes “historical trends and policy preferences continue.” Different assumptions lead to very different results.
The GAO found that under the baseline simulation the deficit problem shrinks but is not solved. Under the alternative simulation over 75 years, the GAO found the “primary deficit” would increase by 0.7 percent of gross domestic product (GDP) (Figure 5, p. 19) because of Obamacare. Translating that 75-year percentage estimate into today’s dollar amount, as Senator Sessions pointed out, would be $6.2 trillion over the next 75 years.
- CBO Issues Report On Immigration Reform Bill (elephantnewsgop.com)
- Obamacare 2023: 31 Million Uninsured, $1.8 Trillion in Taxpayer Dollars Spent (heritage.org)
- Gang of Eight: Immigration reform bill won’t add to the nation’s deficit (thehill.com)