GOP plan to cut exchange grants to states would save $14B, CBO says

A new report from the nonpartisan Congressional Budget Office concluded that a House GOP plan to repeal grants to states for planning health insurance exchanges would save $14 billion over the next decade (Source: “CBO: Repealing health law's exchange grants would save $14B,” The Hill, April 27, 2011).

The House Energy and Commerce Committee passed a bill earlier this month to repeal the planning grants. While the Health and Human Services Department expects to spend $1.9 billion on the grants, the CBO estimate also includes additional savings because delays and challenges in establishing exchanges lead to a decline in potential enrollment.