Aug 14 2012
Group Health Benefits
Regardless on what side of the healthcare reform debate you’re on, we believe it’s important to stay informed. As a trusted group insurance
provider, we’re dedicated to keeping you on top of the changes in the health insurance industry.
Just a few weeks ago, the Congressional Budget Office (CBO) stated that the Supreme Court ruling to uphold President Obama’s healthcare law could save the U.S. government some $84 billion over 11 years, according to Reuters
Here’s a breakdown of how this kind of saving would be possible:
- A portion of the ruling gives states an “escape hatch” from the law’s expanded program of healthcare coverage for the poor; this Medicaid program expansion would be funded mostly by the government but states will pick up a portion of the cost eventually.
- The CBO estimates that about 6 million fewer people than expected will be covered by Medicaid due to states that opt out, which will lower the overall cost to the federal government.
- The alternative, which would be repealing the healthcare law, would actually increase the government deficit by $109 billion.
- The net cost of expanding medical coverage under the law will be $1.168 trillion over the next 10 years, as opposed to $1.252 trillion, which was the prior estimate.
Do you think the new Medicaid laws under Obamacare, and the savings that will affect the government, create cost savings specifically for group insurance? Share your thoughts with us on our Facebook page
group health benefits; affordable care act; healthcare law; congressional budget office