Today Brings Good News/Bad News on Obamacare


The CBO released a small bit of good news/bad news about Obamacare today. The good news: they now estimate that the 10-year cost of the program will be $104 billion less than they previously thought—which, in turn, was less than they had projected in 2010. This is primarily because exchange premiums have come in lower than CBO originally estimated, which means that federal subsidies will be lower.

The bad news: the lower cost of premiums is primarily because the quality of the plans coming from insurers is lower than CBO originally estimated: “The plans being offered through exchanges in 2014 appear to have, in general, lower payment rates for providers, narrower networks of providers, and tighter management of their subscribers’ use of health care than employment-based plans do. Those features allow insurers that offer plans through the exchanges to charge lower premiums (although they also make plans somewhat less attractive to potential enrollees).”

CBO didn’t update its projection of Obamacare revenues, but if those don’t change, it means that Obamacare will reduce the deficit even more than we thought.

But here’s an interesting thing: CBO continues to project that Obamacare will lead to no short-term change in employer-based insurance. But the latest Rand poll suggests that employer insurance has increased by about 7 million since Obamacare enrollment started up last year. If that number turns out to be real, I wonder how that will affect CBO’s budget estimates? It all depends on how this feeds into their models, but it seems like it would be a positive thing one way or the other.

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THE TRUTH...

is the first thing despots go after. An unwavering commitment to it is probably what draws you to Mother Jones' journalism. And as we're seeing in the US and the world around, authoritarians seek to poison the discourse and the way we relate to each other because they can't stand people coming together around a shared sense of the truth—it's a huge threat to them.

Which is also a pretty great way to describe Mother Jones' mission: People coming together around the truth to hold power accountable.

And right now, we need to raise about $400,000 from our online readers over the next two months to hit our annual goal and make good on that mission. Read more about the information war we find ourselves in and how people-powered, independent reporting can and must rise to the challenge—and please support our team's truth-telling journalism with a donation if you can right now.

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