States opting against Medicaid expansion will lower ACA cost, CBO says

In a new report released Tuesday, the Congressional Budget Office estimates that over the next 11 years, the Affordable Care Act will cost $84 billion less than earlier forecasts because of last month's Supreme Court ruling that allows states to opt out of Medicaid expansion (Source: "Health ‘fix’ projected to cut $84B from deficit," Reuters via Columbus Dispatch, July 25, 2012).

The CBO report also estimates that the ACA will cover 6 million fewer Americans than previous projections, although it estimates about half of those uninsured will get coverage through insurance exchanges. The remaining 3 million will remain uninsured, the CBO projects.

The congressional budget analysts estimate that the net cost of expanding medical coverage under the law will total $1.168 trillion over the next 10 years, compared with an earlier estimate of $1.252 trillion. The CBO also estimates that repealing the ACA would increase the federal deficit by $109 billion over 10 years.

In June the Supreme Court ruled that the federal government could not require states expand their Medicaid program under the ACA. The Kasich Administration has indicated that it is still weighing its options and has not reached a decision on whether Ohio will expand its Medicaid eligibility.